Cheating is a social problem, not a technical issue. Just give the community dedicated server possibility (remember how back in the days games used to ship with dedicated server binaries?) and the community can police for free! Wow!
Yes, because players want to spend time moderating other players instead of playing the game. Sounds fun!
Community servers literally invented anti-cheat. All current big name anti-cheats started as anti-cheats for community servers. And admins would choose to use them. Game developers would see that and integrate it. Quake 3 Arena even added Punkbuster in a patch.
Modern community servers like FiveM for GTAV, or Face-It and ESEA for CS2 have more anti-cheats, not less.
Yes, I would also prefer that servers were community run as in the hl2 days.
I would still argue that there are technical issues leading to some amount of cheating. In extraction shooters like Hunt Showdown, Escape From Tarkov and a few others, people can run pcie devices that rip player location and other information from the machines memory in order to inject it into an overlay with a 2nd computer, and they do go to these lengths to cheat, giving them a huge advantage. It wouldn't be possible to rip that info from memory for these "ESP cheats" if the server didn't needlessly transmit position information for players that aren't actually visible. IMO this is a technical failure. There are other steps that could be taken as well, which just aren't because they're hard.