And all in all, if anything is going to be the downfall of AdSense, it will be fraud. It is better for publishers if AdSense does take a proactive stance against fraud, because it will keep Adwords advertisers opting in for content sites, and most importantly, keep the advertisers happy since they are the ones funding the payments that publishers receive. If the fraud problem continues, more will opt-out, leaving publishers with a smaller pool of ads to display, meaning lower earnings for everyone.
Same response as above. I don't think anyone will argue with that, which is completely different than an execution on the first offense, without the ability to address the issue and attempt to resolve it.
Even someone who may only be generating $10/month in revenue deserves a little information and the courtesy of being treated professionally. Administrative costs associated with doing so can certainly be factored into the tremendous amount of income the program generates overall.