I honestly don't see why cheating has to be a witch hunt. In real life there are times to be extremely serious and times where you are allowed to play around. I see cheating in an online game as just playing around (When I'm cheating, it will be obvious :P). Its just an interesting application of an inevitable fact of computer science and cryptography. Cheating shouldn't be taken as seriously as it is.
Of course, cheating in competition is another story, and this is the main reason for writing algorithms that try to detect whether the end user is actually using cheats, or to make implementing those cheats impossible. As long as there is free will, there is room for algorithm-enhanced free will.
