The companies do this, because if there are multiple games in the same genre, being know as the one full of cheaters can make players go to your competition instead.

Some players take this seriously because they have nothing else “positive” in their life going on. If you can’t get a decent job, or a romantic partner, or save up for a house or retirement, or you have no chance on taking a vacation, at least you can win at something.

There’s nothing wrong with video games as a hobby in general, but it should not be your whole life