Never thought about that approach before, that is super interesting. Tying it entirely to rank isn't the best, but placing you in lobbies on an axis that is independent (but correlated with) rank would achieve the same effect without clogging high-ranks with cheaters and giving cheaters a reward.

Then the cheaters organically get placed in lobbies with other cheaters, ruining the fun for them. If the system doesn't work the best right out of the box, that's fine, because you are still gravitating those cheaters upwards in rank, which will most guarantee that they get reported from other players.

I've tried to write a bot for a website and it caught naive bots and just put them in the same lobby as other bots. If wasting time of abusers is your goal it's a pretty effective strategy.

It's very similar to shadow banning