Funnily, for example, using GeForce Now prevents almost all kind of cheats. Maybe the future of the competitive gaming is that you only use remote client for remote server which is hosted by the game company.
Yes, but even some cheats are possible through streaming. Basic things like scripted no-recoil all the way to aimbots based on image recognition. People are even using AI to recognize and highlight players on your screen - and even some built into monitors!
There are hardware cheating setups that utilize an external camera+device with basic image recognition and spoof a normal mouse over USB. From software's perspective, all you see on the client side is normal mouse inputs from a Logitech or razer mouse.
At the very least, this is less capable than wallhacks from reading memory.
Yes, it is true that you can use optics still, but everything memory related is always much more effective and can completely prevented. No need to use rootkits.
I would say that it takes few years still before people have good enough hardware before AI can be used in real-time. You can use OpenCV and train things against specific game to get a decent performance with image recognition, but it is not that reliable.