If the rules say 'no computer assistance', and you break those rules in a way the test monitors didn't expect, the only people you are cheating are other students.
I think the bigger "loophole" is the ability to quickly solve simultaneous and and quadratic equations very easily using built-in functions on the calculators. This saves real time on tests like the SAT, because all you have to do is reorganize the equation to be in the right order, then tap in the coefficients to get the answer.
Really depends on the goal of the course. I agree a lot of courses I took focused too much on memorizing equations, but if you haven't committed something to memory, odds are you won't recognize new problems it can be used to solve. So, yea, 99% of everything you memorize will be worthless, but the problem is predicting which 1% will be useful in the future.
Get off my lawn.
Anyway I used an HP48GX throughout high school (carrying a TI83 only if absolutely necessary). The HP had a pretty much universal following in France.
That said, I don't recall my teachers ever getting too fussy about having us clear our memory; in fact, iirc one of them actually told us to write programs to handle some of the nastier formulas.
Anyway, in my opinion, a good mathematics course should focus less on regurgitation of formulas, and more on problems solving---recognizing which theorems or strategies might apply to a problem and applying them to come up with a result.