Personally I'm fighting that dichotomy but I doubt anyone's getting my positioning. Specifically I disagree with the careless hacking camp on the one side and the too-final radical no-no-no mamedev's on the other.
In short I'm in favor of seeking compromises, like more warning messages, indeed flags wehre possible, but I'm thinking more of a an in-game OSD feature that displays how the gam's running and what's active along with it during gameplay.
Like we press F11 but we only have that poor refresh speed % meter, my idea is that it could show more information, like if lag reduction is used, cpu or refresh sliders, other 'cheats' like autofire or savestates, etc.
Imagine you press F11 and this appears, just to illustrate;
[SPEED100%, FD 8, CPU 74%, AF]
translated: game running at its normal refresh speed, frame_delay on set to 8, CPU underclocked @74%, AutoFire ON
Of course ideally the band would be moveable around the gameplay screen area maybe with smaller fonts too, in order to not get in the way.
This would also be a new and ideal way to confirm the validity of some videos, if for instance a wolf~ish variant of it would make that on-screen ingame info always-on
A build like that, unless it's stolen by RA again, would be a sort of permissive and restrictive one at the same time, useful for tweaking and cheating via hack~ish solutions, but also able to show that you're not using any - or specifically which one - during your run recording.
I'm convinced that permitting anything tweak/cheat/hack without care nor warning is damaging of course, goes without saying, but forbidding all this stuff absolutely and not pay attention to the fact that it makes people lose patience and interest then opt for the worse solutions is a huge mistake too, no doubt about it we're seeing the results today.
A tentative name for an hypotetical build: compromame? diplomame? middlemame?
EDIT another illustration for fun, with another more complete info band;
[diplowolfmame 0.203 : SPD 101%, FD 7, CPU 60%, AF B1:3Hz, REC 1]