That is a very nice suggestion but I'm not sure how much time it would take the devs to manually review every item for every character under each IGN in the top 25. For bags 1-4 that is 80 potential items. There are six additional bags with a potential of 120 more items to review (4 stash and 2 premium stash). That would be up to 200 items to review for one character. Most players have at least two characters, which could be 280 items to review. When you are personally reviewing players gear after a match (if you can see the gear) it would take about 30 seconds to review (without using codex to reference some gear or having to keep track of all the legacy gear). The conditions above would mean it could take 30sec*200 items or 6000 seconds which would become 100 minutes or almost two hours for the simple scenario above. Many people have 2+ characters. Now take the 100 minutes x top 25 and you get 2500 minutes. That is about 42 hours of effort. That would be the equivalent of someones full time job to only review gear every week.
It would also be a huge undertaking (at Dungeon Quest current state) to develop an automated review program. There are so many affixes and combinations possible not to mention legacy gear etc. There could also be issues if deployed - say for instance you are 100% legit player and there is a lookup issue and then you are in the banned league. Would you be happy if that happened? For legit players it could make them go elsewhere.
I am hoping they will develop something for Dungeon Quest 2 that is automated and easy to maintain. I think your suggestion is awesome so please do not think I was trying say otherwise.
I have probably played ~20k arena matches since they released the battle arena. I have lost many many many matches to cheaters and it's very disappointing. However, the devs are doing a very good job addressing each cheater that is reported.