Bans from Badge Arcade cheating are widespread and pretty much confirmed. (though I think the ban only applies to Badge Arcade. Not sure if the ban prevents online play for other games or not). As for 10.5 creating additional bans...That's unlikely. Not sure about the out of region CIA stuff though. There may be instances of players getting banned for playing out of region titles that aren't yet available in the region they are playing it in. That may make it easier for Nintendo to find and ban them.
10.5 didn't update a whole lot. A change to a different security certificate, the obligetory change to NVER/CVER in every update, a version related change in Friends List system module, and a small change to a dummy.txt file in a romfs of a system title (that I don't know the name of at the moment) do not appear to do enough to do emunand checks. An update to Arm11/Arm9 code is likely needed to implement checks if possible and there was no NATIVE_FIRM update in the 10.5 update. Verious devs I've spoken to have said that it's not currently possible for system titles to detect if it's on emunand or not. A thread in Arm9 could in theory be setup. There are "hacky" ways of doing it from what they've said. It's unlikely Nintendo would do that though. It could pose stability issues with the rest of their code and probably wouldn't make it past QA testing for their update software.
Nintendo seems more concerned about blocking entry points and combating Sky3DS users at the moment.
I personally have not installed any out of region titles. So in that regard, I don't have much to worry about. I don't really care enough about badges to cheat in their microtransaction game. Nintendo does not like people cheating in their micro-transaction based games. I suggest you don't do that. That's the fast track way of getting onto their ban list for sure.
