The fact that cheating works is pretty damning for the utility of colleges.
Name something with an incentive to cheat that has completely nullified cheating. I won't wait because you can't really. People have cheated in everything there is to cheat in. Chess, college, interviews, shareholder meetings, congressional hearings, whatever the hell it is, someone has tried to game, subvert, cheat, and defeat.
Does this damn the world? Maybe, if you are obtuse.
Schools have long relied on an honor system, unless you can get really close to a 1:1 ratio with the students so the instructor can properly evaluate each and every one. But, as a society, we've decided that's too expensive so people cheat and get away with it pretty easily.
The cheaters are supporting the students who choose to learn. In the past, this was the role of the rich kids who only needed a "gentleman's C"