In reality I think it comes down to extremes. From the sound of your post you are all trying your best to make sure the activities with and for the players are constant, you've gone through measures to ensure they have a history and something to relate to. Now the only thing that is left is a question you have to ask yourself...
What is more important, quantity or quality?
If the answer is quantity, then you bite the bullet and deal with those that simply cannot roleplay.
If the answer is quality, then you create some seriously sick mobs, keeping it IC, and ravage the area those fools are in, murdering them in ways obscene. Either that or just ban them/enslave them.
Why?
Simple. When it comes to rules/laws, there is no middle ground. A rule or a law is created for a reason.
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