Canada has begun cracking down on this. There are now caps on the number of visas issued. Foreign students are no longer allowed to work full-time jobs by default while studying. This is especially relevant, because the Comprehensive Ranking System for permanent immigration gives points for years of full-time work experience in Canada, as well as for diplomas earned in Canada.
Unwinding it will be a bit messy: lots of post-secondary institutions have to figure out how run programs with a lot less funding, and what to do with capital projects that no longer make sense in light of greatly reduced enrollment, etc.
The damage done to the average Canadian's view of immigrants will take some time to fade away. But I suspect it will, with time, especially since our traditional immigration system really does just skim the "good" immigrants -- the ones with money and the skills to succeed.