You noticed right, its totally diferent quality of services and there is a lot of things which are better than on GF.
Im not sure if its private, i think they have license because from what i noticed they appear like Stary3D, on website (stary3d.com) they have real address, i have checked and company is legal registered.
Shortly about servers things which i noticed: bugs are fixed really fast, maintenances take 15-30 min, i started playing some months ago and uptime is really 100%, they implemented custom istances, zones, quest, items on Paradise server so they are able to develop this game. On Insomnia also they implemented so much things about which players requested. As you noticed you can buy diamonds on Auction House, and prices are good because you cant find any bots or exploiters and even if someone appear case is closed asap.
According to your question im not sure if they warn you before ban, and if conversation change something if they are able to detect this. Like you can read on my old post i just started bot and printed my HP im micromacro window, and my account was banned, of course i talked with them and i was unbanned because i not performed any bad things in fact. I dont know if its like this still, but i dont want to try again