I bet some people are not happy that they lost at the higher levels/rank in the Arena, and to get back at the people who they lost to, they put a cheat report on them in the cheat thread. then there are the people who are still learning about DQ, and end up reporting someone because their gear looks wrong, then there are the people who have legit gear, who are reported by legit people, but that is because the cheaters do so much cheating, it ends up being hard for the reporters to tell the difference, and it ends up on the Dev's desk in their to do box.
basically it ends up with the cheaters having fun at every ones expense, the legit players end up losing some of the fun feeling you get playing DQ, and the Dev's end up over worked and underappreciated.
as for myself, I am not focusing on PVP at the moment, just got my sixth Perk and am working on preparing my other 5 characters for Ascending, while my first character works on a farming build to get the loot for Dungeon Delving and PVP. I am sure that I might end up getting reported in the future, if I make a good enough PVP build that has people wondering if I made a deal with the devil, and at that time, I will have to wait for the Dev's to sift the truth from the lies. but it wont keep me from having fun with the other parts of DQ. and if they tell me to scrap the gear in question, I'll just make some other kind of gear that I hope doesn't get reported, and if I am never able to PVP again, I am still having fun with the dungeon crawling. but that is just me. other people are more focused on the PVP, so this issue is closer to their heart, and it must drive them crazy that the hackers are making such a fun game un-fun.
this is just another of my 2 cents of comments.