I've signed up for this class because I was interested in learning something. Cheating would obviously not teach me anything, so why even take the class in the first place?
The Coursera certification currently holds no or little value. Maybe if they gain enough traction, someday, having many coursera certificates could have some value when applying for a job. This is not currently the case. I understand that they want to be in the position at some point in the future and that if they don't enforce these rules now, doing so later will be hard. Nevertheless, threatening to ban users in not a winning move for any startup.
A better solution would be to offer an alternative to Github, maybe even a partnership with Github. If they hosted their own git repository and used that as the submission system, they users could get source control, as well as a simple mean of distributing assignments.
This felt like a poor PR move from coursera.