No. That's how it should be, but the reality looks different: it has value because it shows that someone spent 3+ years doing what they were told to do, enduring all the absurdities they were subjected to in the meantime. Whatever means they used to cheat don't matter, since they still worked on what someone told them to and produced results satisfying the expectations.

There are, perhaps, institutions where learning and problem-solving are seen as the most important while "following orders" and "staying in line" are deemphasized. For the students of all the others, putting up with an utterly absurd environment is often one of the biggest barriers to learning. Yet, it's a requirement without fulfilling which you can forget about graduating. Hence my conclusion: the diploma from most learning institutions certifies you as a good corporate drone - and that's enough of a signal in many situations, so why bother trying to fix it?