What you are pointing out is not the major damage from cheating. Yes, there is a serious moral problem going on, and the student is not learning the material that they are supposedly paying for. However, the major problem is that they are making it unfair for those that don't cheat. A lot of grades are based on "a curve" so cheaters can screw everyone else in a short term with immediate consequences.

Also, over time, such cheating leads to a disaster. Assignments start to become harder since obviously students don't have problems with them, those that really try to be honest are finding it is more difficult to do well, while they see cheaters zoom right by them, getting As and Bs.

Not all classes are viewed as core classes that one needs to understand or they'll fail some future test during their interview. There are lots of requirements, and elective classes which end up contributing to the final GPA score. So again, it is not just about students cheating themselves, as much as screwing everyone else.

Yes, in real life, often cheaters, manipulators, and liers do get ahead, but I don't think we should become complacent, and at least try to somewhat push back against dishonesty in the academic world.