I have a lot of comments but I'm going to just put a few since I only have a little time right now.
ALSO, please when you ban someone, tell them what the IP was for the device at fault. In most cases, there are multiple duals and no one owns up to it. Only the MH can him/herself tell us who caused the ban to occur. If they dont, we are left clueless and the cheater will most definitely repeat it on the account he/she plays next. Causing another few people to lose their time and money due to his/her incompotence. Its extremely important to get this sorted, as i do understand that there are some specific laws which prevent MH's from revealing IP. Be that as it may, you need to get it sorted.
One way to get around the privacy issue would be a universal account. Everyone would have a single "master" account for the game and forum. Then like Kingdoms you can start individual "accounts" on each server and others can connect to that account as a dual. Have the system log activity of each universal account and then you can more readily identify who is at fault. (not full proof but nothing is)
This would also allow for greater overall security. Bad actors can be more easily tracked from server to server. Duplicate universal accounts can be deleted before they even have a chance to register on a server. Again not full proof to all the problems but it has the potential to make the game and forum a better place. Not to mention benefits in general data collection to monitor various metrics like how often players do X or Y. Those metrics can be used to improve the game + improve marketing. I facepalm each time I get an email about a server multiple times because I've had an account on more than one server on a domain in the recent past - even though they all had the same email. Its a minor redundancy but it has always struck me as unprofessional that there isn't a CRM system in place to avoid that.
No tolerance policy towards FFs. Ive discussed this before here already, so will just quote it.
Confed system update definitely helps as you said but isn't full proof. A rule change is possible but it would take very specific language to make it a "universal" rule aka a rule. This goes back to your earlier point RE: MH. I do think they should be paid as well. Might it mean less of them? Sure. But there could be a complete restructuring of the "support" hierarchy where less MH isn't necessarily an issue. Consistent rule enforcement is absolutely paramount. However what you suggest could potentially open up a ton more work for MH, which as you pointed out they already seem over taxed given the length of responses. Good points thought and definitely something that needs discussing.
That's all for now. I'll be back for more comments soon.