Those replays are appalling. Sadly, cheaters are always going to be around in online gaming - LFS until now has had it easy due to it's niche appeal and close community, but the more popular it gets, the higher the probability of being targetted by cheaters.
Whilst there's undoubtedly a need for a technical way of stopping cheaters (i.e. something coded into the game by Scawen), I do hope that when evidence is brought to light that those cheating get banned. Permanently. They lose their S2 licence.
If they don't, to me that just invites other prospective cheaters with an S2 licence to come and have a go, see what "fun" it is and if they can get away with it. Of course it's the dev's decision how to handle the accounts of cheaters, and I have faith that they know what's best for LFS. But the clause is there in the user agreement that gives them the right to disable the licence, and if this isn't one of those cases, then what is? If they don't, I dearly hope there's a good reason for not doing so, even though we may or may not have the right to know that reason.