All in all, the main advantage of cheaters isn't that they have physical or kernel access, but the fact that they're not the developer - so they can think of things the developer couldn't and have never conceived.
In that sense, I think it should be seen as regular software security, something like CVEs, big bug bounties and things like that
jagex experimented with "ai" banning many years ago, there was a long period where pmods were not even allowed to mute spam bots and just let them reign free, it sucked
Hahahahaha, I just remembered - League of Legends had this community tribunal system where you got rewarded for punishing people. Not ruling correctly, specifically ruling guilty
it pays to keep in mind a lot of people writing their own cheats are just hobby developers like a lot of other people and they're not necessarily trying to make a statement or earn money from what they do