Permanent bans are a strong deterent to cheating. If they don't permanent ban people, this is what a cheater will think:
"Well, I'll try to get onto this server with this hack. If it doesn't work, it's no big deal--Valve won't permanently ban me."
<tries cheat>
"Damn, I got detected. Oh well, I'll wait until a new cheat is released so I can try again. It's no big deal though, because there's no chance I'll be permanently banned."
Perm bans will prevent most people from even trying cheats. Allowing people to choose when they want to cheat and when they want to play legit isn't right. All cheaters are scum and should be perm banned. Simple as that.
"Well, I'll try to get onto this server with this hack. If it doesn't work, it's no big deal--Valve won't permanently ban me."
<tries cheat>
"Damn, I got detected. Oh well, I'll wait until a new cheat is released so I can try again. It's no big deal though, because there's no chance I'll be permanently banned."
Perm bans will prevent most people from even trying cheats. Allowing people to choose when they want to cheat and when they want to play legit isn't right. All cheaters are scum and should be perm banned. Simple as that.

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