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I remember being in Counter-Strike where a cheater would kill most of the opposing team within a very short time after the round even began. I also remember a guy who had a cheat which would reset the server whenever somebody somehow managed to kill him.

Are Call of Duty's online progress files stored locally on the console's hard drive like they apparently are on the PC?

I kind of miss the old Counter-Strike days because you'd play in different servers and eventually you'd find one you'd like and it would be like a community unlike today with peer-to-peer and matchmaking. There weren't any global stats or unlocks, just whatever stats a specific server tracked while you played in it. If there was a cheater, you'd just stick it out till an admin banned the guy or just went to a different server for a while.