DMs have options on how to police unfair behavior.
1) They can sit around watching for it all day.
2) They can say "Please don't do it" and hope it works.
3) They can script in solutions so it can't happen on some of those areas where it is happening and its worth the effort.
4) They can ban people who cheat, grief, lie, cause trouble--AFTER they catch them and these people have hurt their community.
Some arguments here seem to be "DMs are omnicient, they can catch/fix any problem without influence or help from the players". This is a very optimistic argument, but the DMs run the server with help from the players; with suggestions from the players; and this is why they put up a suggestion forum. Its hard to say "Don't make suggestions about balancing the server, only DMs can make those decisions" when you're on a forum the DMs made to give such suggestions so they can read the arguments and make their decisions based on the arguments presented.
As for the four ways to control a problem player.
1. Watching all day, just isn't an option. You'll never catch all the cheaters just by watching. Unless you build a special code to watch for you, which is more work than just fixing the potential exploit. DMs run quests, update the server, try to have fun. Watching for cheaters isn't fun, nor is it that easy to catch with 1 DM and 39 players.
2) Saying "Please don't" won't work either. DMs say "Please don't cheat" all the time, people do it. In fact, the kind of people who cheat are the kind of people who are least likely to respect a request not to cheat.
3) In this case, scripting a solution takes about one minute and the problem is gone.
4) Banning is reserved for only the worst offenses. People who contribute nothing but grief and headaches to your DM team. A guy trying to help level up his friends isn't *that* bad; but its still a behavior that should not occur on a fair server especially one were PvP is open to everyone. On top of that, you still need to use plan 1) to catch the guy.
All in all, that tends to make it easier to stop this exploit than let it go on and potentially cause troubles that take a lot longer than 1 minute to fix.
No one plans to turn the server into a Nazi regime. We can all respect the DMs enough to know they will resist efforts by Hitler to make it impossible to have fun here. This isn't a suggestion like that, its a suggestion saying:
1) "Some players are unfairly going on a quest designed for level 2-5s to help them gain extra gold and experience on it and this should be stopped." It is no different than saying "Level 9s can go on the Zhurkwood factory quest and kill all the zombies for a level 2, and this should be stopped."
2) There is a scripting error, please fix it.
3) The reward seems a little on the small side. (Pretty much the opposite of a Nazi suggestion, its asking for the quest to give MORE to the people who do it fairly.)
4) It looks like either a description or a monster is incorrect; since the monster's behavior is different from what it should be like in the description.
5). Still in our anti-Nazi vein, I'm saying the rewards look a little stingy on this quest.
6). I have some ideas for more ambient loot, NOT JUST on this one beetle quest, but for any beetles anywhere because it fits the setting and will add some fun and flavor. The loot isn't terribly overpowered since it gives level one abilities on a server where you start at level 2.
So it'll be highly appreciated if you stopped calling Anthee and I Nazi-Lawyers and look at the suggestions in the big picture. Most of the suggestion taken together is INCREASING rewards for the players rather than the opposite. The one point that decreases anything, decreases the ability of someone to cheat on the quest (by our minds, and you are entirely right its up to the DMs and majority of the community to agree that this is cheating but that's why we brought it up with them for discussion), and the last point which increases loot, fun, ability of the players to defeat their enemies you rejected entirely as "too powerful" in a line of reasoning that sounds very similar to what you used when you said Anthee and I were in danger of restarting the Holocaust. That could be because I phrased the suggestion poorly and didn't make it clear I thought the ambient loot suggestions could be used with all beetles; as well as including a reminder that the beetles CAN use this loot themselves before the players get to it--sometimes making them slightly more dangerous/unpredictable while still giving you good rewards if you're fast.