You are misleading the audience here.  M$ only bans when someone has modded their account in any way, shape or form.  They don't care if you glitch or boost or anything else.  On rare occasions, if an M$ official can catch someone in the act of something really bad, then yeah, they are gone.  But they need to have irrefutable evidence that some type of wrong doing occurred.  Thus the reason catching modders is so common as the changes that they have made to the game or their own profiles are easy to identify.

In the case that you have presented, it is clear from the highlighted areas that someone was modding the game to gain an advantage on another player.  Don't get me wrong, I am more then happy to see a scumbag cheater removed from the game, but don't paint a picture that M$ is doing anytype of significant overwatch on everyone playing, because they are not.