Yes the latency is not nearly as bad as you might think, it's comparable to a VPN in my experience, though the quality will depend on your location and the available connections.
Sophisticated cheats in games like CSGO (and other competitive shooters) are usually very subtle, such as displaying enemies on the mini-map when they shouldn't be visible which provides a major advantage without requiring superhuman input, and the added latency is often negligible—especially when the info can be relayed to teammates and now you essentially have the entire team cheating with only 1 player suffering from a bit of increased latency.
And I wouldn't say this is an edge case either as in my experience the majority of cheaters I encountered are individuals that play on an alt account and offer a service to guarantee wins in ranked games.
