I not only support this as a counter-cheating measure, but I'd support it even more if it destroyed the cheater's hardware. Hell, I'd support it if it broke their legs and arms.
"But privacy!" is going to fall on deaf ears otherwise. Just like "it's just video games lol."
I'm sure their last bit was in jest. If you've never wanted to upload a punch through the internet, you probably haven't experienced cheating.
I haven't actually played competitive online games for close to 10 years but no, it definitely wasn't a joke. If you think that's crazy, you should see what I think should happen to people who litter when they hike!