My experience has been in two online games, one an Aces game where you flew against WWII planes and cheaters would make their planes make impossible turns or suddenly have 3000' of altitude etc. Made it unplayable. And in World of Warcraft where a sort of soft-core cheating or 'twinking' was making player vs player for non-twinks seriously non-fun, they added a 'twinks' mode where twinks had to play only other twinks. (this was done with a combination of things but it worked.)
I enjoy playing games on 'god' mode some times, and its hilariously fun with friends, and have many fond memories of running a Unreal Tournament (UT) server with some really crazy environments. So I expect there is a market there. Very happy to see Rockstar being creative here.