Wikimedia is constrained here because their entire model is based on transparency. It’d be easy for them to say, “we don’t like that, we’re cutting you off”, but that would open up a zillion other judgement calls and invitations for others to test their edges.
Their approach makes a lot of sense to me. Establish clear legal precedent and keep the rules transparent and legally binding.
The problems of meat puppetry are larger than those faced by wikimedia, and any solution is going to be a much larger effort, with many more beneficiaries if it can work.