If someone is caught cheating how do I know they didn't cheat in previous classes, but got away with it? Do you really want to go to a doctor who, regardless of if he knows his stuff now, is the kind of person who can live with cheating? As I've grown older and seen more and more people get away with not a moment of weakness, but a deep, unfixable character flaw requiring planning and sustained effort to gain an advantage over people foolish enough to be doing things fairly, it makes me wonder why anyone chooses to tolerate this.
Who wants to get a degree from a university that knowingly and willingly passes students who cheat, but just makes them retake the course or in this case do what sounds like essentially extra credit. But rather than prevent people from participating in systems they have demonstrated are not trustworthy enough to participate in, we just give them a stern lecture and extra work, or an asterisk in their hall of fame record, or make them say they're very sorry.