This thread has gone quite some distance on the question of whether RNG is 'hacking' or not, but I don't really see that as the main concern. Rather than argue about semantics, I thought I might raise the point of what RNG is actually doing to the worldwide community, and thus Wi-Fi 'metagame', if you could call it that.
The major impacts of RNG abuse are:
1. Devaluing of shinies, especially those without good natures/IVs/egg moves
2. Negation of advantage gained by hacking perfect IV'd Pokemon
3. Slow transformation of Wi-Fi metagame to DS Shoddy Metagame
Despite there only being three items here, I think all of them are important. The first is something that primarily impacts the trade market. Shinies have been getting consistently easier to find as time has gone on, and that is fine. Many players are interested in the different colored variations, and through the various methods available in Gen IV, you are more likely than ever to run into one. Even with the increased availablility, the rarity of shinies has been good as currency. With the advent of RNG, players can spit out random shinies virtually at will, and with some effort can make shinies that are as good as their normal colored counterparts.
With the supply increasing rapidly, and omnipresent cloning using AR or GTS, the trade market is being flooded with playable shiny clones that nearly anyone can get. This is what (to me, and other competitive minded players) has made shinies from chains, random encounters, or masuda method completely worthless. If I want a shiny with a random nature and random IVs, it is only minutes away. That demotivates players to trade for shinies of that kind that anyone else has, despite how much work they may have put into getting them. While the market may never completely saturate (due to new players, players without ability to RNG, etc), it is getting harder and harder to find good trades for shinies that aren't up to snuff.
While the concern about devaluing something the game had determined to be 'valuable' is important, nothing is more crucial than what RNG IV breeding is doing. Some players are not competitive battle minded, and that is understandable, but in a community when only the best will succeed, RNG abuse is pushing the limits of what is possible, as well as blurring the line between legit and hack. At first, the RNG prospect seemed like a helpful tool to reduce breeding times and have more control over your output. However, it has become so widespread, that players are able to tune legends down to the precise hidden power they would like.
Due to this level of control, there is now very little (if any) difference between a RNG'd Pokemon (done by a competant player), and a flawless IV AR hack. To add insult to injury, people who have experience with AR can hack pokemon that appear to be RNG'd to have flawless IVs, and no one will be the wiser. We have set ourselves up for this by abusing the system to the extent where even perfect Pokemon are considered legitimate by virtue of the player they came from, or the method they were obtained.
The main thing that this comes down to is 'level playing field'. Is there one? If there isn't, how can it be achieved? Currently, people who are RNG'ing and distributing have access to flawless/near flawless competitively tuned Pokemon basically at will. For the outsider, the only way to compensate for this now inherent advantage is to either a) IV breed without RNG and hope for comparable results or b) Hack a team that is level with the RNG products.
Just to make my point clear, I will repeat: In terms of competitive battling there is now little to no difference between RNG'ing and AR Hacking. I don't mean in the sense that one could possibly be flagged at a Nintendo sanctioned event and one can't. I mean that once the Pokemon are on the battle field, neither player has an inherent advantage based on the quality of the members of their team. It is essentially Shoddy battle on the DS.
That is a nice transition to my final point, which is the evolution of an unpredictable and imperfect Wi-Fi metagame to a DS Shoddy environment. If you play Wi-Fi battles against Smogon members, you may as well just do it online. Their teams will be flawless or near flawless, with all the exact Hidden Powers, moves, abilities, that they wanted. Every IV point you have missed due to lack of IV breeding, or IV breeding the old fashioned way puts you behind the curve. I doubt there is anyone who edits their Shoddy team to represent what they actually have in the cartridge, but that is essentially what Wi-Fi will become. Your opponent will have an exact copy of what they have online, and without using something to even it out, your team will be the online counterpart without the maximum points.
Granted the Wi-Fi community is quite large, and exists many places beyond Smogon, but the fact that this kind of atmosphere has begun to form, and may very well spread as the Pokemon are cloned/distributed/re-cloned/re-distributed, it is a concern for me. It will become exceedingly difficult to play a Standard match against someone else who doesn't RNG or Hack yet still knows what they are doing. Just because I am one of those people doesn't mean the overall numbers support that kind of player.
While the argument to whether RNG abuse is 'hacking' or not is somewhat valid, it's missing the point of what is really going on here. Just like any other thing in life, many players are doing everything they can to get ahead, reassuring themselves that while they are producing Pokemon that might as well be hacked, they are doing it in a 'legit' way. Although I still would argue that RNG abuse is not hacking, it is destroying trade forums, Wi-Fi communities, and at least this player's motivation to even try. I'm not writing this as a complaint, as I cannot change anything about it. My goal is to show, that in the near future, AR hacking will not provide any advantage over someone who uses 'legit' Pokemon, and that is a sad news story for those of us who actually work at breeding the traditional way and are actually the OT of our team.
Just wanted to make a note, the best IV bred Pokemon I have produced so far is a Lonely Swift Swim Kingdra 30/31/28/27/30/31. I was very pleased when I got it (it took quite some time to make), but after seeing so many offers on Smogon, PokeCommunity, and elsewhere for virtually flawless RNG Kingdras that can be cloned and shipped to you at minimal cost, it just seemed to be a little bit in vain. The only thing that anyone like me has to hold onto is the fact that the Pokemon was actually created by me, and is unique. To be fair, no one cares about uniqueness when they are trying to win.