Playing with cheaters is awful. I don't really see how it's fun for them either. They aren't really winning if they're not playing fair. I guess they just like to troll.
Before Xbox Live, there was (still is?) a service called XBConnect. My brother and I would play Halo, and Halo 2. It ran on PC, so anyone could jump in an open game. There were so many cheaters. People who moved at super speed, auto aim, modded weapons, etc. Sometimes people would have their server set up so everyone got modded weapons (plasma pistols that shot plasma grenades was a favorite), which was cool.