Well, since Fire Emblem can connect with Friend Codes, at least you can just take people off your list when they cheat. And yeah, I think hacking a strategy game is pretty pointless. Besides maybe FE Radiant Dawn, if only to compensate for the gross lack of experience points available to anyone not in Ike's party. I wish so badly that Vika was a viable character....
People want to cheat for various reasons. Some for the laughs, others for the thought of winning, it goes on. I know for a fact that if there is a cheat code that allows unlimited uses of items that also applies to 1/1 items, the entire versus mode is going to blow. Why? Infinite uses of the power up items, meaning that you just have to worry about caps, infinite uses of something like Pachyderm for one of the ballista's, there's the spell Swarm that Gotoh comes with, and even the Aum staff just so they can screw you over from hell. Or to be a giant dick, have Imhulla or whatever that spell is, and having like 5 copies of it, with 5 mages. Unless you're carrying Starlight over, you can't hit them. Odds are they've jacked up their resistance anyway to a point where it's maxed out, so even if you DID have Starlight, you can't damage them. Plus, that's 5 mages. Even if it's just one, it's still unfair because once your mage capable of using Starlight dies, you're SOL. I can go on with just the theories behind this, but odds are they'll come true just due to the crap that I saw on Star Force 2 (Rogue's with over 3000 health, using multiple copies of WCC, and once someone hit me with Tribe King's counter twice, without going into Tribe King at all).