Note - Steam VAC bans take 2 weeks to take effect - I don't recall why.
Essentially you can be detected, then you will be banned 2 weeks later. Strange system.
Also note that if the game is working on VAC bans then reporting won't do anything - Valve do not ban people based on reports and will only use VAC to make bans.
On a slightly unrelated note - OP's vid was pretty funny actually - I lol'd.
It takes that long in order to not give blatant informations to creators of these cheats.
Because, that's how it works:
1) Coder creates a cheat.
2) He or someone else tests it in the game.
3) IF cheat is confirmed to be working, then:
3a) It is released to the public for free (public cheats, no pay2use required)
3b) Sellable, after you buy it you log into it (you need a subscribed account or smth).
3c) Private groups, some clans like to have such a coder to create cheats for themselves.
4) Cheat works without flaws, cheaters are enjoying (or not), playing few days then quitting due to boredom, some stay.
5) Those who stay or decide to come back after a month or so, are banned by VAC.
Why that long ?
Somewhere between 2 and 3, account of said cheat user is being flagged to be banned. It doesn't say so for the flagged user, thus he thinks the cheat is undetectable and safe to use.
Also multiple cheat users, won't know which cheat flagged them for ban.
It's great system, though it takes time to kick, thus generates some hate from minority, who do not know how it does work.
Is it better than punkbuster ?
Yes and not.
PB kicks them instantly if it detects some cheat.
A) This gives coders important information to fix the hack in order to be undetected once again.
B) Users can enjoy hackfree (not really) game due to fast response.
C) PB tends to give false alarms and kicks player due to some OS errors and firewall issues.
Well, that cheater...was... AWFUL, seriously, he only gave away free points.