The idea of this isn't to punish those who put in the effort, but to force them to keep up a level of effort to make them keep their rank. I certainly don't speak for myself when I say that I'm a bit bored of the rank 1 alliance getting too big to defeat and then just sits there gaining seeds - occasionally pummelling the poor souls who accidentally creep into their range.
That being said, I also agree with toby that you shouldn't be able to profit from suiciding.
I propose that the multipliers get reduced to say 1.5 and 1.75 for -1 and -2 respectively (maybe less). That way, the person sending the rush will get fewer overall losses (thus providing more incentive to attack the top) whilst still preventing them profit.
Please note, I haven't done any calculations to find ideal multiplier values, I just guessed - so apologies if these figures would still cause a similar effect.
EDIT: To Zhouj, Cheese and Ezekiel - just stop talking.
Amen.