I think it’s a great rule. If you’re sharing your library with others, don’t be am asshole and cheat. If you do you’ll be a disappointment to them too. More social pressure to not cheat is only a positive in my opinion, but also I will never cheat and I only share my library with people I’m confident won’t cheat as well. I don’t associate with people who want to ruin other’s fun. If you do then that’s on you. It’s your choice to risk getting banned.
Sounds like a great life lesson to be taught by a responsible adult to a 24 year old discovering cheats.