In my opinion, a hacker is still a hacker. Yes, he no longer has the files containing the hack and that's why he doesn't have a VAC ban, but he did still hack. Unbanning him just because he NO LONGER hacks is being too lenient on our part. The rules clearly state that hacking is and will not be tolerated. Why should we unban you just because your account didn't get VAC banned?
But yes, Penny (or Knife) does have the final say.