> cheating

Not a problem. It's their computer, they can edit the game's memory to freeze their character's hitpoints or look through walls if they really want to. As the owners of the machine, it's their god given right.

> People are breaking the social contract of competitive games.

This is not even remotely close to being worth sacrificing our freedom and leverage over. Let it happen. Play with friends you know and trust instead of internet randoms.

> Booting into a special environment just for competitive games would allow both to coexist.

There will never be such a "special environment" for games. Every government and corporation under the sun wants this for much more sinister reasons. The notion that this will be limited to video games is laughable. Video game are merely how they are selling this subversion to you.

Either your computer is yours or it's not. And if your computer allows strangers to set up an untouchable embassy within your system where they can do anything they want and remain forever beyond your reach, then it's not really your computer, is it? It's the corporation's computer, they're just generously allowing you to use it... Provided you follow their silly policies and rules.

The abuses that will materialize if we allow them to get away with this nonsense will put science fiction to shame.