Ok so after a few hours of researching the cheater's pool, I'm convinced it does exist and players have already been placed in this lobby. I'm a graphic designer and I've taken a look at the screenies posted here and on other sites, they are not doctored images. The emails that have been sent out to players are also legitimate images. Plus there are a lot of topics on this now and most of the players that reported being placed in the cheater pool, all tell the same story. I also checked through youtube and found some videos being posted there.
So yeah, the existence of the cheater lobby is true, however, it has not been officially announced by R* yet.
There is a lot of speculation and false rumors at this point and this is solely because no one has been provided with information yet. Some of these threads have just become a spamfest of who said this and name calling - insults whatever.
But we can certainly take a look at previous games R* developed where there was an online mode available.
First off, 2 years back Red Dead Redemption online was released. They banned online accounts due to players modding saved game files for their online games. It was announced prior to the banning that players who continued using them will be banned. They also noted an interesting clause "We are not banning players who have boosted gold guns through legitimate gameplay or who took advantage of temporary in-game exploits to gain XP quickly."
So at the end of the day with RDR, glitchers or players abusing bugs within the game were not banned. Source - http://support.rocks...Read-Redemption
With the release of Max Payne, they introduced a cheater's pool into the game. Now there isn't much information on ther newswire indicated what would get you banned, but I did find this "As promised, we've taken steps to quarantine confirmed cheaters in Max Payne 3 Multiplayer. Starting today, anyone we've found using hacked saves, modded games, or other exploits has officially been cordoned off in a dedicated cheater pool, confined to wallow with other unscrupulous reprobates.". Again it's mentioned that hacked saves and modded games were banned, same as RDR. The mention of exploits here doesn't seem to fit in context with gaining large amounts of XP like i RDR or cash in GTA. I'm presuming that it would most likely be exploits such as those ones found with the hacked consoles - god mode, massive bounty placing etc...
I did some further reading up on game exploits and I've come to the conclusion that the LSC glitch is not a severe glitch that would hinder another player's gameplay. The way in which GTA:O has been designed, having a ton of cash doesn't affect other players, and also one of the reasons why you can purchase in-game cash with RL cash. Everything has level requirements, and until such time those are met, the money is useless. Of course there are other features that can be used to irritate other players, but the gaming mechanics are built in such a way that it can be prevented.
R* is going to ban a lot of players, it is going to happen but that depends on the severity of the offense and how it has affected other players in the game. LSC glitching is certainly not one of them. The difference between a level 70 player with a tank and one without a tank is literally a month of consistent gaming.
Don't hate me, that's just my opinion from past occurrences of such problems R* has experienced and dealt with.