No server no matter what settings is exempt from cheaters.
Servers have different settings because everyone enjoys to fly the game differently.
If you prefer to use full switch server fine.
If you prefer servers with open pits then fine also.
No settings are correct or incorrect they are options and very useful ones to due to the games limitations on ground object observance (micro machines).
It don't stop people cheating in full switch servers in fact it easier to cheat because you cannot watch any one doing it
If someone want to cheat they will find a way to.
Fly the way you want to but remember using TS and co-ordinate your attacks will make the job easier for you.
Now the graphic lowering is an exploit more than cheat so be careful who you are gonna accuse of cheating and exploiting
.