To be quite honest, I do it moderatly. I've noticed the more I play games nowadays, the less I cheat at it. I'll use a few examples on how I roll:
Infinite Lives? Hell yeah. It's trial and error whether the cheat is on or off, difference being that I won't see the Game Over screen way too often.
Invincible/ Inf. Health: When I was young I would use these, but now for me it's a no-no. Except Ys. God that game is hard at times.
Unlock all-Stop right there. Unless it has ridiculous standards to do so(MM9?) , I'll unlock it myself. This is the one cheat I don't really like.
Money/Experience : I'll admit I use these for RPGs, but if there's an option between 2000 exp and 2000000000 exp, I'm picking the former and turning the cheat off. Saves me a few hours of grinding without making my party invincible. Instead of 999999999(currency), I turn on a few item codes, sell them, turn off my code and go on my way without being broke.
I'll agree that it could take the fun out of the game, but it's within my means without ruining it for me. Especially single player. No cheats and an Easy mode? I'll breeze thorugh that like it's nothing and play Normal for difficulty.
Neither? Well screw it, I'll play it anyway if I still like it.
One thing I can't tolerate is online( or multiplayer) cheating. That's your ass if I ever catch you doing it.