I think cheating is one of the signs of the crumbling of our civilized society. It is a scourge that doesn't stop at final exams, but as we can see in the financial sector one that continues on through life.
That said, we lay all the blame on students, but universities themselves are also cheating. Multiple well-known universities in recent years have been exposed as lying,[1] about their enrollment statistics to rankings organizations.
Emory was exposed for its lies just a few days ago: http://blogs.ajc.com/get-schooled-blog/2012/08/21/fallout-fr...
University of Illinois was exposed earlier this year: http://abovethelaw.com/university-of-illinois-college-of-law
One of the reasons my father moved us to the U.S. from his home country of Bangladesh is that he couldn't stand to raise his children in a culture where he had to pay a bribe just to get his phone service hooked up. When I see tacit acceptance of cheating amongst students in American universities, I see the exact same elements of cultural dysfunction that my dad saw in Bangladesh. I fear without stiffer penalties for cheaters, both for students who cheat and university administrators who cheat, our culture of basic American honesty will continue to crumble.
[1] Everyone uses the term "misreporting" but "misreporting" is what happens when you intend to write down 1470 and accidentally write down 1740. "Lying" is the appropriate term for what happens when you instead write down "1500" for a period of a decade.