It's really not that noticable. I played destiny PVP with mouse and keyboard on there. Maybe a pro player would be able to tell, but your average gamer would not.

Their technology was way better than what Nvidia has on GeForce now; it was truly insanely good.

Yes, sure something like that cheat could work... Since it's information the game is already giving to the player, it's kind of hard to stop. It's also not a major cheat just a little assist.

In any case, you're talking specialized hardware that's harder to get a hold of and may be detectable (these capture card companies likely don't want to get sued so they'd likely cooperate pretty quickly with game developers and publishers).

Here's another point I'll make... there are new anticheat approaches that come into play with algorithmic reactions.

You can for instance, modifying the rendering slightly in a way that wouldn't mess with the player much if it all if you're suspect of a cheater, but would act as a "honeypot" for cheaters (similar to how some developers have come up with "AI poison pills" to embed in images).

I have pretty high confidence that cloud gaming maybe wouldn't totally solve the problem. However, removing access to the game code solves a lot of the cheating problem overnight.

Basically the only thing you can do reliably is subtle aim bots, no wall hacks, no spin bots, no mapping hacks, no packet reordering, no ping abusing, no malicious packet injection (e.g., spawning a bullet in front of everyone's heads), invulnerability hacks, teleporting/movement hacks, etc.

A lot of that stuff can be blocked with just well designed net code, but with cloud gaming the net code design becomes much much less relevant instantly. Cheating in general becomes less "fun" and less ridiculous.