I disagree. Whatever you have to say about the hacked stuff in Diablo 2, it didn't really make the game much less fun, neither for people hacking it nor for people playing it straight.
The problem they're solving isn't a problem that players have. It's that they want to make money off Diablo microtransactions, and they think they can't do that in the presence of hacked characters and items.
Actually, it did make the game less fun. Same for Borderlands.
With hacked items, there was no point in playing a public game, because chances were high that one or more players had hacked items which allowed them to kill enemies in one shot, or made them virtually indestructible, thus trivializing the game. The end result was that you'd only risk playing with close friends, unless you finally gave in and used hacked items yourself just so you'd have a chance when playing with others.
Also, as rare items become as common as sand due to hacking, the marketplaces are ruined, since hacked "super rare" items depress prices to the point that it's only worthwhile to sell in bulk, which is only possible if you hack. It also causes bleed over into my previous point, as regular non-hacking users acquire hacked items via the marketplace without necessarily realizing it, and the game is further trivialized, with everyone decked out in super rares that they bought for 1000 gold each. Now you must choose between a trivial game, and a "legit" game where everyone else runs circles around you because your gear is crappy by comparison.
No. Blizzard made the right choice here, and I for one applaud their decision.
The problem they're solving isn't a problem that players have. It's that they want to make money off Diablo microtransactions, and they think they can't do that in the presence of hacked characters and items.