My understanding is that even with a perfect server side simulated game you can read memory to find out extra information even if the game logic is on the serve

My understanding is that even with a perfect server side simulated game you can read memory to find out extra information even if the game logic is on the server, i.e. that's how X-Ray in UT99 and Minecraft works. This is also hardly the first such incident (unfair bans or borderline spyware anti-cheats), it'll end without any long term echos as always. If you were sure you were banned unfairly and went to the support they'd just link you to some ToS or other, saying that all bans are 101% sure, confirmed, irreversible, etc. If you went to forums you'd get insults, told that you deserved it, that you're making excuses, that there are no legitimate reasons to run CE, etc. or at best told that you were an idiot to have CE running in the background and thus deserve a ban for being so careless. Eventually you might get unbanned automatically, with an apology and a freebie - or not. It depends on the specific company, how many people were banned, how big of an issue it is, does the company bother to fix it, is it reported by the media as a problem, etc. It's kind of a crapshoot and a circus but then again - it's just games (except for the 1% of esportsmen) and they don't have such a bad track record compared to important companies (Facebook, Equifax, etc.) that leak or sell people's life affecting data.