Correct. E.g. you can aimbot by routing the video signal to a capture card on a separate computer and run image recognition software to generate mouse movements spoofed at the hardware level. The only way to reliably prevent cheating is with in-person tournaments played on hardware provided by the organizers.
As someone said about the lack of a Switch anti-cheat: it's a numbers game. If cheating is as easy as downloading a .exe for a few $$$, you're going to find cheaters everywhere. If it requires a complex, and/or fairly expensive setup, the number is going to be very low.
That's assuming there's no money in being a cheater.