I'm of the opinion that the value of Coursera's courses comes from the learning opportunity, not the certification. I think they should simply allow cheating and not issue certificates. Alternatively, allow cheating and continue to issue certificates while letting employers decide the true value of the certificates. The point of Coursera (to me) isn't to pad my resume, it's to learn from courses not always offered at…
I completely agree, which is why I find the cheating so interesting. I strongly doubt that any employers are going to lend much value to the certification so early in Coursera's lifespan, but I don't doubt that cheating is going to continue even though the only thing you 'truly' gain from a Coursera course is knowledge.
Cheating degrades the quality of education at any level. Cheaters are trying to get accreditation when they shouldn't. While Cheating is all over in education (we had a couple of cases at my school), it is obviously going to be more prominent in a place like Coursera, where cheating is easier and looking for cheaters is harder.
One thing they could do is create an algorithm that checks answers much like what they do for journals, but again that's an extra load they "shouldn't" have on their employees.