Point is he cheated once it should have ended there and Walter pushed it in
I think there is a difference between not understanding submissions guidelines and cheating.
Billy submitting a bogus MAME recording = cheating. Steve playing on this specific printed circuit board or that specific joystick because he didn't understand the submission rules (or possibly the rules were not set in place until AFTER Twin Galaxies reviewed the submission and retroactively applied them, which would equate to total douche-baggery on the account of Twin Galaxies if true) might result in a disqualification but an outright ban would be unfair.
You don't ban a sprinter from all future track meet competitions because of a technical disqualification (ie he or she committed a false start which might disqualify them from the current event but not ban them from future events or competitions), however you would certainly ban them from all future events if it was proven the athlete used doping or performance enhancing drugs to "bulk up" or train for the event.
What Steve Weibe did amounts to a "false start" because his submission was invalidated by a technicality.
What Billy Mitchel did would be the equivalent of doping in the athletic world.
Billy used an emulator to submit a score, and without concrete evidence that he was even playing the game live in front of the camera. Then he lied repeatedly about using MAME in interviews.
And furthermore using MAME to "train" at higher levels isn't even considered cheating, so long as the actual record attempt is played on genuine arcade hardware. An arcade player using MAME to help train at high level for a WR attempt would be the equivalent of an athlete training at high altitude to naturally boost their oxygen absorption rates, which is allowed by governing bodies. Giving yourself a transfusion of your own blood before the event in order to artificially boost red cell count, is not allowed and considered a type of doping.
An outright ban would be appropriate in Mitchel's circumstance (deliberate cheating and falsification of submissions), but not Wiebe's (disqualification based upon a technicality). Wiebe did resubmit a legitimate score and beat Mitchel's bogus MAME submission. Kudos to him!