There eventually wont be much point to mining when the cap is reached, then there will be a point to process blocks for their transaction fees. You are also rig

There eventually wont be much point to mining when the cap is reached, then there will be a point to process blocks for their transaction fees. You are also right about the hardware issue, plus there are other more profitable ways to use a botnet. There is also just a general problem with the argument that it incentivises botnets, they are their own incentive, anything that needs bandwidth, cpu power, and stolen information will be much easier with a botnet.