If someone is willing to spend hours and days setting up virtualized hacks via exotic PCIe memory snooping interfaces, I don't think they will experience an SMS requirement as even a speed bump on their journey. In fact, for many types in this space, it would serve as a form of encouragement.
The real answers to this involve blended statistical approaches, community ran instances, pre-game lobbies, et. al. You can still have a highly-competitive ranking / ELO system in place without top-down tyranny. It just looks a little bit different and requires some lateral thinking.