Think what you wish, but I've seen this many times too and there is one key difference - we're not as shortsighted. Over years I always said farms maybe rise the income and online numbers in a short term, but in the long run it will kill your server. So if you take that into account, it's not that you earn more thanks to cheaters. Hosters don't want to ban these premmed makers as they see it as a waste of money, but they can't see the money lost due to other people quitting (or not starting) because of mass cheating. They're also afraid of losing those "players" (cheaters) thinking it would highly decrease the population, but I know for a fact there are many people like you, who'd come in their place then. So I don't care how many we'd have to wipe out, I still see it worth.
I'm not ignorant in that matter as I myself have so many times been one of those who quit because of poor rules enforcement and eventually stopped playing at all. I know all how it works.
So please, don't judge us looking through the lens of these few other hosters you've known.
The "currently most popular 7.4" you are referring to will probably die within a month or two at best, because of no limited farming. "Casual" players will quit as soon as they get mad/tired of it and the PGers will quit once they get too high levels (thanks to farms) and have nothing else to do. If you find two groups that are gonna employ themselves fighting it may last a bit longer, but when the war is over you may as well close the server already. That's always how it ends and it's not what we're aiming for.
That's not a "perfect example" when you put us in a row with people like Ryan. It feels like an insult.