Cheating is not allowed actually.. and API doesn't give you the information it shouldn't.
The goal is creating a strong AI players (not necessarily human-like) that win without cheating.
It's restarted after every 10 games and does offline for like 2 minutes intentionally. Btw, it had 270 viewers few minutes ago - that's the most viewed Brood War steram on TeamLiquid and most viewed of all the streams on HitBox.tv ;)
Nope, that's not allowed. I guess it's just the supply of enemy units it has seen so far.
There's only one thing that bots have access to and humans don't - unique Unit IDs. Nut that doesn't help much.