I wish Valve had some sort of monetary incentive to fix this. If this happened to the cash cow that is Counter Strike this would have been fixed already. It's sad to see this going on especially with the resurgence TF2 has been having lately.
And yet they really don’t do anything about it, I have yet to see evidence that they engage in the cat and mouse game. A lot of cheaters have full inventories of skins and have been cheating for many years at this point with the same cheats
If you don't think Valve is banning anyone from their games then I invite you to take a trip to the VAC steam forums and see all the posts from people proclaiming their innocence and complaining about their ban. Always a good time.
People are being harassed and doxed by a group of people that have turned one of their most popular games into a fucking cesspool. They need to either throw in the towel and drop support for TF2 or wage war on these losers.
Hire a dedicated team, involve the police, I don't fucking know. The current state of TF2 is an absolute disgrace, it's fucking pathetic.
That's precisely the problem; they continue to support the game, in the state that it's in. Honestly, an appropriate move would be for them to officially discontinue support for the game altogether (even if that means not having a new IP to replace it with). This means turning off their official servers, and removing the ability to buy/sell inventory items on the Steam Marketplace.
Right now, Valve allows people to sell items for real money (which they take a cut from) in a game that is overrun by bots. They need to either fix the bot problem, or stop taking people's money.