2. Make one character enough to work well for everything he needs.
Imho removing proxy would not remove cheating. Private VPN are common option.
This post will break your dreams but...This topic is about proxies, it means you can have different IPs, it means your suggestion is failed.
Proxies are anyway mostly used only to bypass or workaround inconviniently designed or missing features of game. (making safe parking places, crafting, looting, taxiing, dragging mercs.....)
Proxies is not even half the problem when talking duallog/fastrelog.The problem is the fact that you can very easily launch more than one game on your computer, allowing you to multilog as much char as you have disk partition/USB key or whatever.Making the client more robust on this aspect would remove duallog and multilog with one PC, you would need more than one computer to cheat (very small number of people concerned).This way you keep the proxy feature, permitting a player to use proxy with one char for whatever reason, but you disable the possibility to use it for cheating.The multi PC/ virtual machine oriented cheats have no way to be addressed other than "build the game so that players aren't tempted to use them. "