There is already an anti-cheat system in place on top of VAC.
The report player system generates a report that the security team views. They investigate the claims and if they find them to be valid they take action. You aren't going to get banned for being a good player.
As far as the speed requirement goes, that is a "soft" requirement, meaning you can play with a connection that does not meet that requirement, but you will experience a great deal of lag if you do. The matchmaking system also takes connection speed into consideration, so people using such connections will typically only get match to each other.
European players connecting to NA servers and vice versa isn't really something that Activision can control. They can only do this by either using a proxy or setting their geographical location to a different place in their Steam settings. In either scenario, the matchmaking system is unlikely to assign those players as hosts, so the players are actually just putting themselves at a disadvantage due to the latency of the connection.