In the world of console video games (Playstation, Nintendo, etc.), the culture of cheating is practically
encouraged by the developers. Lots of games come with hidden "cheat codes" that give players extra powers, extra lives, etc. The developers put in these codes delberately, knowing full well that players will discover them and share them on the Internet. Heck, you can buy this at Wal-Mart, it's a memory card that automatically unlocks all the cheat codes for dozens of Nintendo DS games. (They sell them for the Playstation, Gamecube, and Wii also). Just plug and play:
So maybe it's no wonder that some players have a lax attitude about cheating in games. They fail to see much difference between using a cheat to get an advantage over their Playstation, and using one to get an advantage over other
online players.
As far as PotCO, cheating will become a much bigger issue if the game ever allows players to trade gold and/or exchange items with each other. That opens the door for people to try and make a profit from their cheating. And as we've seen in other MMOs, that kind of thing gets really ugly really fast.