The problem is, they aren't being selected out of the industry...they're becoming the industry.

Unfortunately there's always new recruiters that are willing to press this point either because they believe it or they just want the commission and will say what it takes to place a candidate. This is not something that will be fixed just by having the "bad" recruiters slowly removed over time. It's a constant task to educate job seekers that such an event is very unlikely.

Recruiters get paid by the companies seeking employees. If these tactics do indeed provide employees, then the company pays them and they stay in the business.

Recruiters are selected for recruiting talent. As long as the talent stays for some length of time that the recruiter isn't blamed for poor retention, then the recruiter wins. This time is months, not years.

That's why recruiters who work these angles still exist. It's not like this is a new phenomenon. It has been going on as long as there have been tech-recruiters.

If they did get selected out, they would all be gone already.

There's almost no barrier to entry to become a recruiter.