In regards to insta-bans it seems like it has to do with people not following the installation instructions and specifically not removing the usb drive after loading.
As far as in game is concerned, I've reported and sent video proof before and those people are still playing. Those people were totally obvious and abusing things like instant respawn and teleportation. I'm not really sure what Bungies process is on banning people.
Therefore, other than the insta-ban from improper installation and loading, there should be no issues using the cheat as long as you are responsible. Something as simple as using the aimbot or other features during important moments to clutch a round versus constantly having it activated would be a good example. The key is to avoid being reported in the first place.