I'm aware that the world isn't black and white, someone who submits a truthful resume to a job posting where they don't technically meet the qualifications has only made a little white lie that's almost universally forgiven, you're correct that they'll likely look ambitious and confident if they tell the interviewer "if you want to be super technical about it I don't meet this one little qualification but I think you should ignore that because factors X and Y make me a great candidate".
It's this culture of pervasive little white lies which is harmful. Be brutally correct, not just sufficiently honest to brush off these occasional inconsistencies. When someone does make a little white lie, call them on the lie and take the mandated action. Otherwise people who are most flexible with what's acceptable will advance more than those who require correctness.
They haven't lied at all. Where is the lie in saying, "I don't meet your requirements but I think you should hire me anyway"?
Is your conclusion still that I'm suggesting to "train people to leave their ethics at the door and lie until they make it?"? Are there any points that I can clarify for you? Do you have any suggestions to protect the systems from people that exploit it by sacrificing their morals?