The are a few developers and publishers that stay on top of this issue and ban users and provide patches to stop exploits, which is great. The smaller developers just can't and it ends up hurting them in the long run. On the 360, cheaters would ruin the arcade games with high scores that are impossible to get.
Modding can be awesome. Some of the mods for Skyrim and Minecraft are incredible, but for any other type of games these PC losers simply don't have the skills to play and have to cheat.
Another solution (good but not perfect) is to only play games that use dedicated servers or moderated hosted servers. The peer to peer games have no barriers to modders, while dedicated servers can check incoming player input parameters versus expected values and identify a modded character and kick the offending user. I dont think I ever saw a cheater on Destiny, World of Tanks or War Thunder or any other developer dedicated server, and rarely on moderated host servers where owners boot cheaters or risk losing their ad money if their palyer base leaves. You may still get your occasional asshat griefers and team killers fluttering about, but they usually get kicked or some penalty after multiple offenses.
The problem with the dedicated server route is that you lose the ability to play the game online if the servers ever close down.
I agree with OP we need to get rid of these people for any type of mod or hack. It ruins games and takes the fun out of it. I have stopped playing a few games due to these issues.
A modder creates new twists to a game breathing new life into it or just adding to the replay value. Games like Counter-Strike, Killing Floor, Garry's Mod, and Team Fortress 2 wouldn't exist without mods, and neither would MOBA's, an entire genre.
A cheater is inherently a modder, sure. But a modder is not inherently a cheater.
Why do people even cheat? Must have very sad lives, can't even have a little bit of a challenge in a video game?
Plenty of reasons. Some may be genuinely too naive to see anything wrong with it. Others think they won't, or don't care if, they get caught. Then there's the trolls who's fun is to ruin yours. And many other variations of people being **bleep**.