In pro bodybuilding, steroids are nominally illegal, but essentially every pro bodybuilder uses them, the physique necessary to be competitive in pro contests is not achievable without them, and the people running bodybuilding shows deliberately make no effort to enforce this rule.
In that kind of context it's hard for me to say the "cheaters" are doing anything wrong in any practical sense. Nobody involved actually believes in the rule they're breaking.
I think cheaters in other arenas can rationalize away to themselves that their context is equivalent to the bodybuilding context I described above.