The very word "cheat" has an animosity built into it. But, the question is... what is cheating?
I know I'm getting a bit philosophical here but... seriously.
Seems to me that cheating basically revolves around violating or purposely finding "loopholes" in
accepted ground rules. Ground rules exist between people. So, if you're purposely violating ground rules set up between people you're definitely cheating 👎
So, in OLR, the reason taking shortcuts isn't allowed is because
people agree on a set of ground rules. If the ground rules allowed shortcuts then it wouldn't be cheating now would it?
Loopholes... and by that term I'm implying bits that should have been covered by the ground rules but weren't. Are they cheating? Depends. If anything they could be considered "cheap" (poor, unsportsmanlike, whatever word you want to use) if not "cheating".
Now what does this mean for a video game? Usually, the game will simply penalize you or stop you or end your game if you violate a "ground rule". And if it doesn't, is it cheating or simply a "loophole"? ( NOTE: Rewriting the ground rules with a cheat device... that's a YES.

)
Is using shortcuts cheating? It could be if you consider the fact that AI doesn't do it (well, actually they do it just a little bit). How about ramming the AI into the sand considering they do it to you? How about riding an AI trying to pass on the outside into the grass... considering they do it to you?
So, part of it, for a game could be comparing to the AI or simply comparing to what other people consider "ok". Point is... those ground rules vary. But as long as the ground rules are clearly communicated, then how is it cheating?
For me, when it comes to 200p races *nothing* (short of using a cheat device) is cheating. BUT, there's a LOT of cheap behavior. Using the Dodge RAM (exploiting a bug) is cheap. Wall riding == cheap. Ramming the AI == cheap. Riding the AI == cheap. Shortcuts? == Yup, cheap.
However, I am guilty of plenty of cheap behavior (which seems to be directly related to the difficulty of the race... Hmmm... ) although I try to keep it to a minimum.
Wall riding? Once, Mission 34. I'd be ashamed if it wasn't so damn hard.
Fuji 90s shortcut? Never. Never ever.
Suzuka final chicane shortcut? Ehh... ok, from time to time.
