Few seemed to actually care if the srever's elite guilds were using no wall hacks to get loot or someone was running with 6 chars receiving identical input, or botting their dailies overnight.
I agree with you that adding cheating to the cocktail of toxicity would probably not be significant enough to lose a large group of players. However cheating may yield a competitive advantage too large to be overlooked by the players.
Personally I used to get more annoyed by queuing for a matchup and someone dropping so we're in a team one short, or by poor matching than cheating which was usually more of an eye-roll moment for me.
Resolution would have required GMs using a (temporary) ban hammer to bring some repercussion to all the toxic reports in the chat logs, not just headline anti-cheat sweeps and very rarely during tournaments. The resulting toxic anarchy seemed the obvious and inevitable result of games ignoring just about every behaviour. Which is why I voted by removing my wallet. :)