While that’s all true, the day you can just fire up an undetectable AI to play for you, and all the matchmaking queues are flooded with people doing the same… Players are going to beg for the ability to not just team up with people they know, but play against people they know.
Maybe that wont be privately hosted servers, or even fully custom matches, but when cheaters become indistinguishable from the highly skilled, forming even the most basic community bonds in order to find people to play with will be preferable to matching with randos.
For similar reasons people already prefer to team up with someone they know, as opposed to a stranger they might have to carry. People will want to be able to pick who they go up against, as well.
Once the cheaters win, (and they will) the first game to figure out a system to let players do this, WILL be a better experience than current matchmaking algos.
Edit: An example of a game that kinda already does this is Elite: Dangerous. There are two main modes, open and solo, in open you can run into all other players also playing in open, that means you might have to defend yourself against other players.
But, if you want to avoid PvP, but still want to run into other players, you’re in luck! Because there is a third option, private groups. When in a private group, the game works as if you’re in open, but you can only see other players who are in the same group. Meaning other players who also do not want to engage in PvP.
Mobius is likely the largest such group, essential it’s a giant clan of non-PvPers who play the game together. Something similar could absolutely be done for other games, where smaller communities can then vet their members and get rid of players who break the rules.