The problem is: "Hackers" don't play the game for the sake of "hacking"...
They "hack" for the sake of being "better" than everyone. If everyone is hacking, (as those would be the only people, playing on said server) then they have NO advantage over any other player, really. What's the point? Lol.
Yep a hackers server would be fairly dead. sure some people would go and try it, but with so many hackers they would be QQing all the time. or information exchange and the crappy hackers would learn to be as good as the talented hackers. then it would be even worse for those of us that dont cheat!