When thousands of admins sign up not even 20% of them will be "badmins" as the other 80% will have eyes on the reports, not only me and the backend system working. Everything done by everyone is public, that's the beauty of the system, you will be able to see 99.9% of the information that is required (0.1% for vote results being shown at the end of the voting :P). As mentioned before "bad apples" will, in time, be in a way or another removed from the system, either automatically or by people reporting X user/admin. As mentioned before, if there were 100 reports from which 10% were false bans, atleast half of that will not have enough proofs and will be easily detected by other admins.
In rare cases where a report PASSES BOTH FILTERS, when the admin adds the report and voting happens and when the user fills a denounce and a result is shown. Then, I will look into it if the result was not convincing by any of both parties.
Valve has automatic systems, yes, but automatic systems once they have decided they require human input in order to rever it.
Here, there's an automatic system as well, however, there's more human input in it making it having diferent results and not just a "X" was detected - I don't care if it's not a cheating program - VACBanned! -
example can be found here.
And in the lesser cases where a player or an admin has been suspended/banned for no real reason, then that's when I come in.
I'm not saying that it is bullet proof, but we are all people and can review and decide according to proofs submitted and community's input about the matter.
And being honest, I don't think there's an MMO that does not have cheaters/hacks/bots even on full release. They try to clear them up, but I think there's nothing better than eyes reporting.
Not to mention Google, google is a hell of a spy, I already found a cheater/hacker on this topic posting :P and nothing is preventing users / admins from asking in the server of the reporter what happened. It requires people to actually care of the problem more than just sit back and do nothing and just cry about it on the forums. Step up and take action, it's better to have 10-20-100 banned cheaters/hackers and 1-2-10 players false banned that can defend themselves with the system in 10-20-100 servers, than having 10-20-100 non banned cheaters/hackers ruining 1000-20000-50000 other player's game experience.
Atleast that's what I think, hope you share my thoughts. Also, nothing is preventing administrators to filter false bans from their servers if someone in their server is trusted and was added to the list, though it would be expected to be reported to remove it from the list.