So anyway I've had a friends with benefits for years we've recently called it off because he caught me in a lie about sleeping with other men while we were having the friends with benefits. Anyway have you ever been in this kind of "arrangement" and if so what happened?

The Ladder Theory only states what makes a woman want to have sex with a man, it does not take the puerile view that women don't want to have sex, or that they have to be somehow tricked into it. If you are a 'friend with benefits', then you are on the Real Ladder. Congratulations. If you get replaced, you haven't been demoted ladders, you have merely been replaced by someone higher than you on the Real Ladder.
That being said, usually women are more interested in long-term relationships than men, and consent to this form of relationship because there is ladder disparity in favor of the male. A lot of women say that they are just having sex, they like it as much as men etc... While the second statement is undoubtedly exaggerated, there is no reason to think that women don't want to have sex just as much as men. Which if course only makes it worse if a woman doesn't want to have sex with you.