If they're getting decent hosting, they're not gonna have restrictions that could have it taken down. As for the law, it's illegal for you to take these |-|4(|<5 and use them on Novalogic's servers. It is NOT illegal for you to create these hacks. Once you own a license of the software, you can do whatever you want with it, so long as you keep it to yourself. It is never illegal to develop and distribute an application, no matter what it is intended to be used for. It doesn't matter if the app is designed to discreetly share kiddy porn, as long as you're not doing it, the only people who can be arrested are the users.
Overall, I don't care if these people cheat, as long as they do it on their own servers. If they cheat in public servers, I say mark down their IPs, and get in touch with some 1337 |-|4><><0|25.