It sure must be great to be a Botter. Much better than being me. I cannot loot dungeon bosses, just in time for all the botters to have already gotten tons of loot. To "punish" those botters, you make equipment break 10x as fast. Now, I have to repair my gear every 30 minutes, even if I don't die. I sure wish I had some of that Farmed Gold on my side so I could afford to wear Armor. The botters sure do!
In no time at all, these botters will all be level 10 vets. They will sell any accounts as such, and Cyrodil will be dominated by them. We will have emperors named ahheedd and asdrj, who through ill-gotten gains, shuttled ahead of everyone else.
Everyone else will have to compete with them.
Maybe you should make it so that all items have a 3 day decay timer, that will get those bots. Worn items, banked items, all of it!
Maybe you should make it so that when you kill a monster, killing any further monster of that type for the next 30 days gives 0xp and 0 loot.
Maybe you should make it so Gold Sellers can just apply for a special account and be given free level 50 V10's with maxed out skills while you are at it?
You need to solve this problem. Maybe you value the business of these botters more than my business?
Within; Without.