Sort of. In real life, you are expected to have immediate knowledge of your field and (in some environments) be able to perform under pressure. I'm not going to pretend the curriculum is a perfect match for what people should know, but it does provide a common baseline to be able to have a common point of reference when communicating with colleagues. I would suggest the most artificial thing about exams is the format.
> It’s sort of unnecessarily high stakes for the students; a couple hours to determine your grade for many hours of studying.
I don't like dismissing the ordeal of people who face test anxiety, but tests are not really high stakes. There is a potential that a person will have to repeat a course if it is a requirement for their degree. At least at the institutions I attended, the grade distribution across exams and assignments, combined with a late drop date, meant that failing a course was only an option if you choose it to be. A student may be forced to face some realities about their dedication/priorities, work habits, time management, interests, abilities, etc.. It may force a student to make some hard decisions about where they want their life to lead, but it does not bar them from success in life. And those are the worse case scenarios. A more typical scenario is that you end up with a lower GPA.
Whether it's good or bad I don't know, I think US higher education focuses too much on ability to produce huge amounts of mediocre work, but that's the idea behind exams.
That's probably a good thing to filter on for, say, the navigation role on all kinds of crafts (from land to sea to space). There are naval roles where navigating with a sextant and memory is an important skill to have, and to test for.
But that operating-in-a-vacuum skill doesn't relate well to roles that don't need to exist in a vacuum. In most of the jobs in the real world, we get to use tools -- and when the tools go out to lunch, we don't revert to the Old Ways.
When an accountant's computer dies, they don't transition back to written arithmetic and paper ledgers. Instead, someone who fixes computers gets it going again, and they get back to work as soon as that's done.
The point is more about whether the graded work is actively reviewed than which individual choice is ideal or not though. Whether it's electronic or written, remote or in person, weighted towards exams vs continuous are all orthogonal debates to the problem of cheating/falsely claiming work.
I had attended a few courses over a decade ago and just completed a degree recently. The methods of cheating have changed, but not because of pencils vs keyboards.