1) The presence of xrayers deflates the economy and devalues the work of other players who play legitily.
So it does ruin the game for others.
2) Yes if you don't like being killed in Jail then don't hack its quite simple actually, unfortunately you chose the former and now must deal with the consequence of a permanent ban.

YOu have been punished for your crimes and will remain that way.

1. Yes it is. All items gained by players via cheating both ruins the economy, as well as cheating over other players that try to get them legitimately by following the rules.
2. You're the one that accepted the rules of our server. If you dont like or follow them, then you can go play on one of the countless other servers. It is not a right to play here, it is a privilege. One that we as staff withhold the right to remove.

Any form of cheating will not be tolerated - This means anything that gives you an unfair advantage over players who are playing the game the way the game was intended to be played.