I have used and continue to use A pokemon generator to get pokemon I have tk trade to get/evolve if I want them. Is it hacking? Heck yeah it is! Is it ethical? To some no but to me it's a means to an otherwise unreachable end. If I would consider battling online with real players then I would definitely leave my pokegen'd pokemon behind even though they have regular stats and aren't godly but no matter how you look at it it is hacking plain and simple.
The voices in my head may not be real, but they have some good ideas! <(^_^<)(>^_^)> Official Yarne of the FE: Awakening Board! Bunny monster!!!
While I don't use AR (anymore), I do not mind the use of Pokegen, and indeed use it myself, for the manipulation of IVs and IVs only. As a result of this, I tend only to battle with friends who either do the same or know I do it and don't mind - and that's how I find battling the most fun, anyway; with friends. Illegal movesets and such, however, is a big no-no. Only time I ever did anything like that was making Pure Power Regigigas and Deoxys-A with ridiculous movesets (like EQ/Sacred Fire/Close Combat/Bolt Strike or something) strictly to use ingame for the lulz. And by this point I'd already finished everything in-game so I just wanted to do it for kicks.