Whoops, I meant to mention that. Creating an engaging learning experience is the most difficult option of all. It needs to be done, but there are steps that should be taken in the mean time in order to a more fair (but admittedly suboptimal) environment for students.

A couple of things unacknowledged in your argument. First, there's the practical implications of cheaters on GPA. Cheaters get higher grades than what is possible without cheating, making the curve in a class lower than what it would be in a completely honest classroom. I'll be the first to champion someone who doesn't care about GPA, but there are concrete affects that a lower GPA has on students. Even though you got a good education, it's still something to think about. Second, there's the fact that the solution you propose is not possible in the current system. The incentive structure is all wrong (read: nonexistent) for undergraduate teaching in universities. Further, the majority of professors don't even have the requisite skills to be good teachers. Even if we did get the incentives right, the talent simply isn't there. To be honest I doubt there are enough people on board with improving undergraduate education to get it done.