I think an important distinction is getting drawn here, that there's a functional difference between using a 'cheat code' and 'cheating at a competition'.
The first is sometimes the only way to save a game, or perhaps to test something about the game, or achieve a specific effect for your software toy.
The second meaning is 'breaking the rules'... in this context, the rules of a contest.
To me, this question implies the first meaning entirely, since the other question is moot for most people, either they will or they won't, that's a moral values thing that they have or they don't.
For Sims 2, I would use cheats all the time after awhile, mostly money cheats, because I like to build and I didn't want to play through the hard grind of getting the sims up to that point.
For Sims 3... I think I've done it a couple of times, again, mostly in the context of testing, or building, and all for what is essentially 'solo' play. For challenges though, don't break a rule, don't even fudge it... It's a slippery slope to think to yourself... "Aw, what can it hurt if I give this Sim a Mid Life Crisis, after they achieve immortality" (I use this for instance because it *did* occur to me that an Simmortal might not be ambitious after they've achieved immortality in the Dynasty Challenge and I was tempted. I didn't because, like in Time Bandits: Evil always starts small.) The thing it hurts is your integrity. That's something that erodes incrementally over time, and is mostly invisible to your thought process... "What can it hurt?" "It hurts your sense of right and wrong, is what it hurts."
Mostly though it's so easy to make a ton of money with *any* Sim now, the only reason I'd use cheat codes is to fix a broken or potentially broken game, for building purposes, or for testing things. I find it's a lot more fun when you challenge yourself, succeed or fail.
And, I did make a deal with the Devil, to be sure. I promised myself that all those thoughts of cheating and breaking of rules that I *want* for my Dynasty don't happen until it's *over* and *finished*. Then all those little Simmortals are getting the mid-life crisis they want, and they'll all get set to the age I prefer them at... And since the Challenge will be over, it won't matter how I play with them, since I won't have broken any rules before hand. I won't bother you with pics or stories, either, since it's beyond the scope of the set-up, but I will have fun with it. Assuming I *do* finish the dynasty, which I will, since it's pretty open ended.
Anyhow, I don't judge other people on how they play their Sims, either, so cheat or don't cheat, it's up to you, as it is *your* toy. (If someone cheats in a contest here, who's going to know? Only the cheater). Sorry about the length of my reply, but it's food for thought.