It's not right for legitimate players to have to play with cheaters, it's not right for cheaters to skew the development of the game with statistics that misrepresent the level of play. It's not right for people to be playing with the cosmetics of the game. Everyone should be on the same level playing field.
Too many people care too much about the wrong things in this experience and it is ruining it for those of us who play for the right reasons with integrity. Please reconsider who you should be pandering to and stop pandering to people who break the ToS.
It is also hurting the commercial success of the game because the reason people do not stream the race to world first in progressive content is because they are running cheats and would expose themselves live. This obviously wouldn't fly with square so they are forced to do all the race to world first offline and all we see is posts of when they cleared it.
WoW has a big raiding scene because they are able to broadcast the race to world first live. It doesn't make sense to hold the game back like this all to enable cheaters.