| I would like to respond because you're speaking authoritatively but this is mostly your opinion.

Sorry, I felt inclined to respond to your broad claim "It's nearly impossible to play multiplayer games now without KLAC". XKCD 'Wait, Honey, sb. is wrong on the internet', we both know it.

  | Indeed. The goal is to reduce cheating to a manageable level. It is impossible to eliminate.

I agree with the goal, but KLAC is not an acceptable way to get there. I would rather suggest to:

  - dont trust the client
  - really dont trust the client
  - support / let customers host the servers (they are the ones who will put in the time required to deal with cheaters, and they will also be there once the devs/publisher have abandoned a game)
  - Use statistics a lot more: mark outliers for review, and until review, aggressively move them to their own matchmaking bracket. 
  - Implement a "demo"-style replay format for matches/sessions (which therefore contains all inputs of all parties). Make all "ranked" or eq. matches publicly available (no names/chat, just the gameplay) and people will develop tools in their free time to detect cheaters.

Also: Have a simple trust score (Account age * Money spent), and act more aggressive on people with low trust score. Let new people improve their trust score by reserving ~$100 on a credit card which will be billed if the account gets banned for cheating.