Of course it is cheating. Considering that FM11 is a test and that the players are the answers to it, then why shouldn't Genie Scout be considered cheating? It gives you all the players you want, for any position, all their future stats... Isn't this a big help when buying a player?
Yes, it is not as flagrant as FMRTE, but for me it is clearly cheating. Used it a lot in FM10 but now I stopped, even because it doesn't open my saves...
EDIT:
And yes, of course it is your game and that you may play it the way you want. But if you play this way, then don't come over here celebrating an amazing signing if you used GScout. The same with FMRTE and then say you managed to waste 140M with a 40M budget. And the same with using the corner bug and then congratulate yourself for scoring +120 goals.
You are free to use all these forms of cheating. But you are not free to come here and then say you discovered the best talent/tactic, when it was a program which did that for you.