It has been fascinating to watch the reaction to Panos' blog post on cheating. I agree and disagree with this follow-up post, however. On one hand, I agree that most reactions have generally been shallow and poorly thought out. On the other hand, I think that what made Panos' original post so compelling was his comprehensive listing of the many disincentives to fighting cheating at the university, including the impact on his salary.
Overall, the result of Panos clicking more or less a single check box (and, admittedly, doing a few Excel tricks) to detect cheating was: (1) 45 hours of students crying in his office, (2) his class took on a powerful negative atmosphere, (3) his best students were turned away during office hours, (4) his student evaluations went down, (5) he arguably made less money than he would have otherwise, (6) he was called a racist in at least one public forum, (7) the reputation of his university and/or program was damaged, and (8) he was sent a cease-and-desist letter.
Ultimately, this is a huge set of disincentives. It is not surprising that most would simply choose the more appealing alternative of just deciding that a professor cannot be responsible for making students want to learn.
What is most discouraging about the salary information is not the money itself, but the implication that even Panos' department was not willing to give him support when he tried to fix the problem in his own classroom. (Arguably, they must have known that addressing cheating would have a huge impact on course evaluations.)