There is more then one kind of panhandler.
You have the actual homeless panhandler who really really needs help, who sits quietly in a corner, freezing half to death who looks really really sad.
Then you have the Panhandler with a cellphone and nice shoes who is up to some scheme. I swear I saw one with a Blackberry!!
Then you have the mental unstable ones who yell and scream and bother people's businesses by going on and causing trouble. They then go down a street bothering people.
Imo by banning it, you will end up seeing who really needs help. If it is baned, certain people who are running a scheme will likely pursue something else. It will also motivate some people who beg on the streets, to make something of themselves.
Then you will end up with the "true" homeless and we can help them.
Do not assume that I am not sympathetic to the poor, but remember all cheater and liars are not all rich, corporate types, the poor can it in the same way as well.