Of course students need to be thought that plagiarism is not ok, again the question is how to teach them best. The threat of big punishment is not necessarily an effective mean towards reducing "crime". The article also hints at the fact that the cause of the plagiarism is not so much malice, as difficult surcomstances, and a lack of knowledge/skill in students (though the main example around which the article centers, may not give a strong argument for this)
Meanwhile, we are losing ground every year in the worldwide competition to produce an educated workforce. You can't just assume every asscrack should get a degree regardless of talent or even the willingness to try, just a little.
I still say the situation is pathetic, and we are right on track to become another deposed colonial power like France or Britain.
I am getting really sick of the moral relativism building up around cheating and grades. It's a fucking nightmare. Schools should just flunk out the 40% or 50% who do this shit for a couple years, and people will get straight.
It completely devalues the work of people who actually do the work. Welcome to the mediocratization of civilization.