Eh, that's no different from people who spam glitches which break the game, people who spam badly designed moves that, yet again, break the game, or just overpowered characters in some sub par fighting game.
Even in games that are pretty well balanced (but only at a decent skill level) you have the lower brackets populated by people who use a character that excels at low skill level play (LOL KEN) or a tactic that owns noobs (LOL CHEESE)
The only difference is that cheaters won't get horribly beaten by pros by default, but it's not like someone who runs around using Ken and spamming Hadoukens and Shoryukens is going to encounter a pro player often.
Meaning the lower skill level PvP games/lobbies/whatever will be populated by cheaters and idiots who for some reason stay there and get owned by cheaters, and of course new players who have yet to encounter cheats, but they'll either
A. stop PvPing
B. find the group of PvPers who don't cheat
What matters is how well designed and balanced the PvP will be without cheats. Or how well players can balance the PvP without making up too many rules.
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