Yes it would punish all players, but I would rather not get any rewards at all myself than further play this pure cancer called PvP. RU removed Hongmoon Coins as a countermeasure to this long ago already.
In general NCSoft showed time and time again, that they are not doing anything against people cheating (KissDio or inaxx how he is called in NA is one of the best examples, multi clienting with 10+ accounts at the same time, speedhacking on every single one of them, manipulating 6v6 matches so his chars get ranked for hmc, killing clients to prevent losses and to top it off he survived so many reports without any kind of punishment).
Do you actually want to enjoy PvP, or try to endure the state of the game for some measly rewards? The easiest solution would be to go the way RU went long ago and remove the Hongmoon Coin rewards from PvP.
In my case I'd welcome getting no rewards from PvP anymore, but considerably changing the state of the game for the better by not giving people an incentive to cheat (especially after everyone knows, that NCSoft is not banning anyone, no matter how much or obvious they cheat).