So a student who only understands the basics should be able to answer most of the easy questions and students who have a deeper understanding can answer the harder ones.
Well-written exams should feel pretty fair and leave students feeling like the result they got is proportional to the effort they put into studying the material (or at least how well they personally felt they understood the material).
Assignments and projects are great for learning, but suck for evaluation.
Another example, lit classes where the grade is based on time limited, open book exams, hand written in "blue books"
Read the book, pay attention in class, spend 90 min writing an essay, and you are done.
Personally, I dropped out despite a full ride+ becuase why would I put in work for a no name state school when I already has an FTE job as a developer out of high school anyway.
Turns out fraudulent action can still get the bag.
However I suspect that there are many who 1) are more concerned about the short term outcome, 2) consider the degree/diploma to be little more than a meal ticket or arbitrary gatekeeping without any connection to learning, 3) view the work as a pointless barrier to being handed said diploma, and/or 4) don't see the value of human learning in a world where jobs are done by AI and AI systems routinely outperform humans on complex tasks.
The other thing that feedback feeds into is credentials. I realize that some people are dismissive of this aspect of the degree, but it is important to pursue further studies or secure a job. While you can argue that these people are only cheating themselves, and some of them are cheating themselves, a great many will continue to cheat as they advance in academia or the workforce. In other words, they are cheating others out of opportunities.