Why online games don't make separate servers for cheaters?

I just find it kinda logical.
If all cheaters would get sent to play on servers for cheaters, it would make a perfect solution of "Wolves are satisfied, and sheep are safe"

Besides, it would be fun to watch cheaters competing against cheaters, to see what kind of insane tactics they would use against each other.

Imagine online game where everyone who play are cheaters, it would make most insane fights, with some using rather unexpected tools and means to win.