Minecraft Server hangs on Chunk Loading (can be forced by hacked client)

Issue:

Hackers can make a Vanilla server "Hang" just by forcing the server to load too many chunks to handle.

Steps the reproduce:

#1. Load up a hacked client (I used weepcraft)

#2. Set your fly speed to > 1000

#3. Fly in a straight line and load as many chunks as possible

#4. You will then time out and the server Hang until it is able to unload all the chunks created.

Possible solutions:

#1. Best solution, Parse incoming packets for illegal movements (Moving more than physically possible) and kick.

#2. Limit loaded chunks :

int maxChunks = (renderDist^2) * playerCount;

if(loadedChunks > maxChunks) {

    //prevent loading more chunks

} 

As a vanilla server owner, (Top 3) I would like to see this addressed as fast as possible. Thanks for your time.