Getting flustered and deleting someone off your Xbox Live friends list for cheating in a crappy video game. 
But not before sending them an angry PM explaining your deep, deep disappointment at their lack of moral fortitude.
So I decided to play some Diablo 3 when I saw one guy from my friend list playing it online...
I had to delete guy from my friend list, didn't bother reporting him or anything, but I wrote him that I was disappointed he chose to cheat in order to progress and ruined game for himself.
http://www.neogaf.com/forum/showthread.php?t=922756
He was even so kind as not to report him since he knew that, if it got out, their life would be ruined. 
The thing is something like that should ultimately teach him how silly it is to place importance on the items and levels he grinded "the right way".
I'm not trying to say that loots games are pointless. More just saying that its easy to prick the illusion bubble that spending hundreds of hours grinding for things is a noble pursuit.
Enjoy what you play. Hell enjoy your skill in a game if you are good. But there will always be an inherent emptiness if the reason you are playing something is to be the king of the grind.
That being said playing Borderlands, friends will often drop into my game and give me tons of better loot to be nice, all better than the stuff I've spent dozens of hours playing to get.
I'm nice about it and generally accept it but when they leave, I often throw it away. Because its about the journey to get the great thing. Not just getting the great thing.
So I get the idea of maybe he wouldn't want to play with others who want to go about it that way, but it seems like in this case he was being nosy just to preserve his ego.