After 30 years in and out of "academia" I am exasperated and despondent at the state of affairs and what I consider the total bastardisation of the function of education.
The OP story of rampant, shameless cheating is all too familiar and is simply grist for the mill. It's something to which most professors have grown thick skins. This is the ordinary background against which we have to teach, day in, day out.
Despite being a optimist in so many areas of life I see little prospect of fixing this without extraordinary and radical changes in the governance, funding and mission of universities.