Lol, Rigwyn...
I have to say I think the law is inappropriate. Like Rigwyn pointed out, what's it trying to accomplish? Botters (and what's technically "botting") ought to be a matter of policy for each individual game. If an unpaid game has a problem with botters then its just a matter of irrate players who are pissed off at the botters. The government has no business imposing draconian fines and prison sentences on narcissistic @$$3$ whose only "crime" is pissing off other players. This is the real world, not kindergarten. On the other hand, if it's a paid game and it has a botting problem that causes players to lose real world money, they don't have to play it. The company that owns the game will deal with the problem, or they'll lose business (and risk bankruptcy). Let the free markets settle that one. This is a matter of business and dealing with jerks, not a matter of crime. Besides that, any punishment ought to fit the crime. Unless a cheater cost someone $40k and five years out of their life, then the government has no business imposing a punishment that harsh. I think this law is just another example of "I'm pissed! Let's use the government to MAKE everyone stop pissing me off!"
As far as PS goes, I've heard of two different things called "botting": using an actual modified client/bot program, and training while afk. As far as the second goes... I think it's silly to discipline players for it and even sillier to call it "botting." It's not using a bot, it's using the mechanics that were designed into the game for the purpose that they were put there: training your character. As far as it being unfair, with the current damage rates on dummies, you might get 20 - 30 minutes of grinding before the dummy dies and you have to come back and start a fresh attack. That's not giving anyone much of a training advantage at all. If you could get an hour or two out of a dummy then maybe it's a different story. As far as dealing with actual botters...