Personally I believe the latter is more important, and I do not understand why some people place so much importance on the former that they would rather lose gracefully than win by "cheating" (which I also feel is a poor argument as a lot of people make the definition out to be much broader than it really is).
EDIT: By "cheating" I am referring to the breaking of moral, 'unwritten' rules as opposed to the real, written ones.