It just seems ridiculous that the thing we are focusing on is that kids are cheating and not that we've made this massive, unscalable, expensive, ineffective education system. We are acting like its the kids who aren't holding up their end of the bargain when they try and cheat it.
Interestingly enough, here's how this worked when I was an undergrad TA:
* The college's central office paid TAs for obligatory undergrad courses (so basically CS101 etc. up until sophomore year) * Advanced courses were funded by the individual chairs and institutes. And would you look at that, suddenly there was a whole less of code submissions auto-checked for plagiarism, and a whole more "talking to the TA to explain your reasoning and problems you encountered". This also served the double purpose that these TAs got to know the students, their likes and dislikes, and led to some easy recruiting for PhD candidates and such.
That universities pay the TA's beans isn't the customer's problem.
you can’t admit more PhD students, necessarily, because to graduate they need to do research under an advisor, and access to grants/projects won’t necessarily grow along with required teaching staff.