Most creators in SL are probably fortunate if they cover their SL expenses with what they sell. Relatively few will earn enough to make an RL living from SL sales. I'm not actually sure there is a similar problem with items from the Kitely Market being god moded and then distributed. I've been in Opensim since 2011 so I'm pretty aware of what's going on, and I've been an HG customer of the Kitely Market for about 10 years now. In that time I've seen the growth of pirated mesh content in OS from pretty much zero to the situation we have now, where it's ubiquitous. In all that time I have yet to see items from the Kitely Market distributed for free, and indeed, most in OS seem more than happy to pay for that content. Some of that content will no doubt have god powers used on it , mostly for the kind of reasons you've highlighted, but not so much for redistribution for free, which if it happens, I suspect happens very much under the radar. Also, most content for sale on the KM is reasonably priced, which makes a huge difference, but then creators have much lower overheads than those in SL, where upload costs are considerable and land rental is still a rip-off, even with the reduced tiers of today.
As far as restricting the use of god mode, this is Opensim, and it comes as is, and if you host your own regions on your own hardware you'll have access to god powers. The only way to restrict this would be on grids that don't allow residents to have access to the region server, which many grids don't. But the widespread availability of Dreamgrid and the Diva Distro means that it's relatively trivial to set up and run one's own mini-grid, even if only temporarily and sporadically.
It's interesting though, and I'm not the first to note this, but those who complain the most about 'copybotters' are usually those who are the most prolific purveyors of pirated content. The Kitely Market, on the other hand, hardly ever mentions the issue, though I am sure that they take copyright infringement very seriously.
God powers are extremely useful, and personally I often use them when I come across items I have made that for some reason lack the permissions I would like them to have - it's easy to mess up!
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