I think a good number of those people would actually prefer NOT to cheat at all if they were given an update that allowed them to track down Pokemon that appear on their nearby sightings list.

A really popular television show like Game of Thrones would have a lot of frustrated fans if they didn't release the show on DVD, didn't re-air episodes, and told people to just tune in when they show them the first time.

Cracking down on sites that allow people to watch the episodes for free AND not giving people a legal means to watch them except your very narrow broadcast means a lot of frustration that the problem isn't being addressed properly.

A lot of players don't want to cheat, but when there's no reliable way to use the game as is to find a Pikachu that's nearby, no way to see if you're headed in the right direction and getting closer, and when the game was advertised that way and the first iteration gave you an indicator that you were stepping closer, some people are going to play less, some are going to quit, and some are going to look to find a third party to help them reliably find Pokemon.