Cheating is endemic in BR and tactical shooter type games. I remember one f2p game was deleting 50,000 cheater accounts every month.
If the developer's winning $20 per cheater detection, and puts in extra resources when there's more cheaters, the equilibrium ends up a lot better.
And even for free games, I could imagine different ways to tie a monetary stake in in exchange for skipping invasive anticheats.
Blatant cheaters are bad in some ways, but subtle cheat are far worse imo.