Rather than tackle the moral dimension of this sad situation, a simpler notion comes to my mind.
Does this prominent example of B-school cheating have anything to do with the increasing mediocrity we seem to see emanating from US businesses? Could we simply be seeing businesses increasingly hire graduates who have cheated so often that they simply don't have the skills which are expected to accompany the degrees they have allegedly earned?
Perhaps it's not so much the day-to-day, low-level skills and knowledge, but higher-level applications of that knowledge.
There will always be a few brilliant, driven young men and women who become tomorrow's innovators. Engineering, physics or chemistry students at universities like MIT, CalTech, Carnegie, Stanford, etc.
But what of the mass of middling graduates from so many other four-year programs? And graduate degree programs? I'm beginning to think that many students are so fixated on receiving (already inflated) grades, that they are simply skipping true learning, in order to secure an initial billet upon finishing their degree programs.
Of course, once you're in the work force, as a very wise grad school professor and mentor told me, it's rare people recall the school from which you graduated six months later. If they do, he intoned, you have a problem. Performance is what predominates in the workforce, although, of course, not in every case. Connections, relatives, alumni, can sometimes grease the skids for the somewhat-above, or just truly, mediocre. However, if so many students simply cheat to finish college, is it any wonder that they might not really have the knowledge that forms a foundation on which they, and their employers, can progress and improve?