I agree with that. There's gouge... and then there's questionable gouge/cheating material. If you have to question whether or not your gouge is "legal" (aka somewhere between gouge and cheating) then it's probably cheating. I've got no problem with MQF's, condensed IMC break procedures, tab data, etc... But in the training environment, if someone has a copy of a test (especially if they're hording it for themselves... not that I'm saying it should be passed out to a class), if someone has an instructor's script for a sim and study it before a sim, if someone has a checkride route already completed and gouged up before the checkride spin (talking specifically about UNT here) etc... that's crossing the line. Like I said before, I'd tell the person to knock that shit off, but if they didn't, I really don't see going to the flt/cc about it as being a douchie move. Why should that person be #1 in the class and get the best plane come drop time over someone who busted their ass to do it the legit way?
Plus, would you really want someone who cheats their way to wings to fly with you? Would you feel comfortable flying on a crew plane or in formation with someone that doesn't know the difference between trail and echelon and the ops limits associated with each? Would you want to fly with someone that could potentially violate the crew every time they go fly because they didn't know little caveat stuff not covered by gouge? I personally wouldn't want to be near someone that doesn't get into the books.
Like I said before, I don't mind gouge... I make it and use it myself. BUT, it should be a supplement to the knowledge you already have, not the basis of it.