> I believe the military academies are all on similar honor systems, and I remember a few times of mass-cheating scandals, which have pretty heavy penalties, including expulsion in those environments.

According to some faculty, the U.S. military academies (or some of them) have rampant cheating (and other corruption) and little penalty. Look up The Cost of Loyalty by Tim Bakken, for example.

The best way to corrupt an institution is to idealize it.