This is the "a lot of scammers are better than a few sophisticated scammers" argument, which I disagree with. Users themselves have varying levels of sophistication (unsophisticated scams work just fine on some people), and there are other mechanisms like chargebacks which can unwind damage after the fact.
> The fake ratings and reviews are making this even worse by leading people to believe other people have found some of these scams valuable.
I have no insight into how well Apple is doing combating fake reviews, but no anti-abuse system is perfect. There is the same question here: would things be worse if Apple didn't police reviews at all.
The App Store is broken but it is the least broken of the app stores.