What even makes you think it's a solvable problem? Even with a totally cryptographically controlled end-to-end hardware chain that treats the player like an adversary/inmate (like in the consoles, maybe even more strict) there's always a possibility of ML-based cheats with a low-latency camera. Barely anyone does that now because there are easier methods, but trust me, it will get used if required, just like DMA is used now. People already throw crazy money into cheating.
It's a race to the bottom where everybody eventually loses except the corporations. Players never get rid of the cheaters completely, unrelated people who don't play games get their hardware+software locked down because of a bunch of whiny gamers, and corpos obtain the ultimate vendor lock.
The optimal amount of bad behavior is not zero.