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You have to find the perfect balance between a punishment, and having the player want their account back. Otherwise you're just going to have people who feel cheated by some sort of cheap gimmick of a suspension, and that won't give any sort of incentive to improve behavior if they've already abandoned their account. It's the same reason permanent bans are very rare.
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Thats why i said do both. Also, no ones telling them to abandon their account, if anything that should be the least of the worries here. They should be happy theyre still allowed to play, even hackers usually only get jailed where other games would erase all your stuff. They still get to play, they have some work to do to make up for their wrong doing but thats all, if they don't want to take responsibility for their actions and act like an immature kid and quit, so be it, so be it, you can't blame the jailing system on that