Yes.
> and isn't the system rife with cheaters?
That's an orthogonal point. Even the American system is rife with cheaters, either explicit[1] or legalized cheating aka College Prep industry which helps you with everything including essays if you pay enough.
So again, what is the US achieving exactly?
And whatever the answer to that question is, it’s going to require a bloated admissions department to make it happen.
I don't know you, but I'm going to guess the cultural problem is a problem of a culture not your own, and what happens in your culture is the series of isolated incidents.
what? US has legalized cheating in so many ways (athletes, college preps, dean's lists, legacies...). People with enough resources and/or enough motivation will always find a way to get what they want. US gives them a paved road while in the East, they have to cheat. When they can't find a paved road, they cheat in the West as well.