Rockets are definitely faster, but the challenge of designing a spaceplane is fun, and they look nifty in orbit. I'm not sure how much of a cost difference there is, but being able to land at KSC with all (or most) of your parts is helpful in career mode, and, for recovery missions, a great big cargo bay that can land on the runway is pretty handy, too. Insofar as spaceplanes are "cheating"... Kerbin is an impossibly tiny planet peopled by large-headed, bulgy-eyed, green-skinned pyromaniacs who all live on the same equatorial peninsula, for some reason. Like rockets in KSP, spaceplanes have a high dry weight and use engines which would be woefully underpowered for the real world. They're certainly not playing the game on easy mode, and, if you use FAR, you gain a couple more layers of challenge from aerodynamic disassembly and mach effects. Also, even in the real world, people haven't given up on spaceplanes. The RAPIER is based on a real-world concept, after all, and the U.S. Air Force is still playing around with the X-37.