I sat about a dozen university exams in the last couple of years and in no instance did I have someone staring at my face, or peeking over my shoulder, during them. There were always supervisors in the theater, but they mostly walked along the aisles of desks and made sure to be unobtrusive and quiet as a mouse.
I really don't see any justification for what you describe.
In the case you describe you have to be physically present at a fixed location at a fixed time. In many cases that might be inconvenient or impossible, and I can certainly see situations where it'd be nice to have an alternative. Not having to have my physical location coincide with the physical location of my university of choice could be quite handy.
I connected with a Lady via cam and she asked me to show via cam in a 360 style if I had anything else in the room I was in (books, someone helping,etc).
Took the exam after that and passed it. It is a bit unusual but very very convinient. If I had to take the exam physically somewhere I would have needed to take a day off.