I think the issue is less "should people be able to use higher resolutions", but more "should it be easy to use higher resolutions". If someone has the knowledge and the skills to find this out themselves (without using a trainer or a magic-cheat-finder-programs (like the Action Replay system)), then full marks to them. But if the world and his dog can download and use these programs, then it spoils the fun for everyone.

Other games have suffered a lot from this - e.g. in one of the Diablo games, if you want to play online you nowadays have to use a character creator and give yourself all sorts of souped-uped items to stand any chance of surviving someone else's attack, simply because everyone else does so.