I guess I'm splitting hairs here, but they didn't really pay for the service they were banned from. Using your bar analogy, it's like they were let into the bar

I guess I'm splitting hairs here, but they didn't really pay for the service they were banned from. Using your bar analogy, it's like they were let into the bar for free, bought a drink (maybe finished it, we don't know?) then got kicked out for fighting. Would they be entitled to their money back for the drink? Cheating has a small impact on the player base and probably on how much money Niantic is able to extract from the store. Holding onto gyms for a period of time nets the trainer "free" coins they didn't have to purchase. GPS spoofing opens up some of the more remote gyms to more attacks, and allows certain people to level up faster. It also has the effect of driving legitimate players away because they feel they can't compete. I don't agree with many of the decisions Niantic have made, and I no longer play the game. But I don't agree with people demanding refunds from game companies that they have been banned from. I like that cheating players are punished. Cheaters in Counter Strike have left a very sour impression on me.