The latter. Always the latter. You know why?
There are in fact many games with functioning anticheats that do not require kernel access. And there are also plenty of games with kernel level anticheat that is easily bypassed by, and thus are full of, cheaters.
Know why? Because the difference is "does the game's moderation team give a fuck?".
That's it. That's what makes the difference. Kernel level anticheat is a band-aid solution that's cheaper than paying a decent support team what they're worth. And if they'd rather pay for a half-assed software solution that's also a gaping hole in user security, then you shouldn't play the game in the first place. I don't negotiate with terrorists, and neither should you.