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Yes, it is cheating. In MLB, when you waive and DFA, if a player refuses the minor league assignment, I believe you have to release them (not positive on that rule, but I'm almost certain you can't bring them back to the active roster officially). Or if not, if a player is DFA-ed a 2nd time in the same season, they have the right to request a release instead (although in that case, I'm not positive if you have to pay out their contract).
Basically, in MLB terms it's illegal for one of those 2 reasons, but they're a little more complicated to deal with so unfortunately we don't have those in the game. Yet...
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