Cheap or cheating? Heck no. It's good FUNDAMENTAL football.
What about fake punts runs/passes? Or fake field goal attempts? Or fake PAT attempts? Are those any more cheap or "cheating" then this play? Or rather, is this play any more devious and "against the spirit of the game" then a fake anything else? What about fake passes or hand-offs? Or half/fullback direct snaps? Or flea-flickers/statue of liberty plays? How are any of those tricks and fakes any different? Seriously, how dare a team try something different or new? Should there be rules on the books that say that only a quarterback (or kicker and placeholder) can receive the ball via a snap through the legs from the center, and then only the quarterback can only use one throwing motion, where he must throw the ball, or only one hand-off motion where he must hand-off the ball. And no fake-outs when running either. You gotta run in a straight line only, no jukes or bobs. Oh, and no false formations. That goes for defenses too. If you line up and act like you are going to blitz, you must blitz. If a cornerback lines up with a wide receiver, he must run with that receiver, no CB blitzes.
Talk a boring ass game.
No rules were broken, no spirit of the rules were infringed. There are fakes and false moves all the damn time in football. Perhaps only soccer would be close in having the same number of fakes. Fakes and false moves are a part of the game. You get rewarded for heads-up play and action, and you get bit in the ass when you sit back and just let things happen. The above clip is a prime example of sitting back and waiting, and it bit the defense hard. When the center passes the ball to a different player, the play is active, and you should move. And don't stop until you hear a whistle. That is fundamental defense, and this team failed hardcore.
Pay attention to the game a bit more, it's not all nice and simple plays. Every play is meant to throw the other team off somehow. Anything from lining up line backers to show blitz, to cut runs by receivers. Fake throws, play action, and even head bobs and hard counts by the quarterback. Each is devious in its own way. I applaud the coaches for doing this. I'd bet that you'd not be able to pull this play against that team again. They learned their lesson.