Do all people cheat here?
Not I! Matter of fact, here's a breakdown of all a few of my characters so far.
Name: Thor a'Zaene (deceased)
Race: Nord
six: Male
Class: Fighter
Sources of income: dungeon diving, bandit raids (50/50 %, roughly)
Thor was my second character. -
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Name: Crystal Beth (retired)
Race: High Elf
six: Female
Class: Mage
Main source of income: dungeon diving, bandit raids, College fetch quests, potion sales (from Alchemy)
Beth saved up lots of gold, bought the house in Solitude, and officially gave up adventuring after her partner got killed via friendly fire from Beth.
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Name: Gunter, Son of Talos (Active)
Race: Nord
six: Male
Class: Fighter
Main source of income: bandit raids, dungeon diving, chopping wood, Smithing
Gunter (unlike my other characters) will occasionally just chop wood. He makes about 10% of his income this way. And why not?

He also makes cheap weapons for sale occasionally.
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Name: Khahk`hayre
Race: Dark Elf
six: Male
Class: Spellsword
Main source of income: dungeon diving, bandit raids, thievery, potion sales (Alchemy)
Khahk~hayre is more opportunistic in certain ways than my other characters, and doesn't mind being a low-level criminal on occasion. He also has made an oath: he shall never work a day in his life. Therefore, no chopping wood for him! He doesn't steal as much as he did in his early days, though.