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I always thought the biggest advantage would be that the non-cheaters can only get action from one cheater at a time. You will never have the two cheaters chasing the same flush. You won't ever have both cheaters calling on the river.

If Bob has AA, cheater 1 has JJ and cheater 2 has 88...flop comes AJ8...instead of tripling up, Bob will only double up. Thats a pretty big deal.

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I agree that this is the most clear and obvious example. If cheater A and B are on cell phones, or MSN, etc...then each knows that that other has hit his set, hit his flush draw, hit his str8 draw, etc.

At 6 max it would be very helpful for me to know the hole cards of another opponent (without his knowledge). As such, I can't see how it would not also be profitable for 2 of the 6 players to know each other's hand.

I'm not paranoid, but I have to believe there are players colluding hand information online. Why? Because the can. That is all that has been ever required for some people to cheat. Add in the fact that they are cheating "strangers" (less guilt), and that it is hard to get caught, and you have even more reason to worry.