From my limited time in Dark Ascension I never experienced nor saw or heard (even in Ventrilo / Teamspeak) anything to do with cheating. Obviously, that doesn't mean cheating didn't/doesn't occur.
As far as the leadership being in on it...I think that is a really far-fetched situation. Of course this opinion is based on the fact Koota (an officer) was caught cheating. That does not mean it is actively encouraged.
Even when people were upset that we'd been trained by another guild and we were antagonized in ooc/shout, the officers told us explicitly on more than one occasion not to train or get in a shouting war with the other guild.
There are a lot of good people in DA still.
I'm not in DA anymore, so take this however you like.
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