Well with how quickly movement and teleport hacks came to this game, it seems there's far too much trust in the client right now, and this hack is also exactly that. It does not bode well, that's for sure, but we can only wait and see.
And to think people ******* at SE for making 1.0's client more dependent on the server. Yeah the lag sucked but that was an engine problem. Player simply can't handle having a game "in their control" because they do stupid **** like this.
And yes, quite a lot of legit players utilize these.