Cheating as a Gameplay Feature?

Today on Zen of Design a newly released game was mentioned. What was interesting about the game wasn't the basis of the plot (themed around Shadowrun). The interesting thing about this game is it's features. The developers took an interesting step, they decided to base many of the game's features around standard hacks. The game is a First Person Shooter. You can see through walls, teleport instantly, etc.

This was quite interesting to hear for me because earlier today I was discussing methods of defeating cheats in DynamicMUD. Our situation is quite different, but in many ways its the same. If you make the cheat the game then no one is cheating anymore. In fact Sliis even mentioned how it is interesting no one has based a game around spamming each other. First person to use up their opponent's bandwidth wins!