The people using this cheat/cheese on Sony could be banned by Sony as it is a violation of the Eula. On Xbox1 it gets a little bit more gray as people are not disconnecting their network cable but just quiting the game using the Microsoft interface and restarting it. So they are not in violation of the Eula for network manipulation. That being said I don't see a mass banning happening over this anymore than it happens over Aethon or the Templar or loot cave.