I think it's ridiculous to make it "illegal" to put a block of dirt over your chest. Generally speaking, the rules are in place to keep people from exploiting the game, taking advantage of lag, and general douchebaggery. I don't think putting dirt over your stuff breaks any game rules.
Besides, now that people know it won't really help them out much, and knowing that it is extremely easy to exploit into them, we will probably see people not doing it as much, heh. OK, maybe not, hehe.
Anyway, it is a difficult task finding the cases where authority needs to step in and control what the users are doing. Much like government involvement in industry and people's private lives. I don't think the admins really want to get into regulating every little situation.