That depends on the reward function. Should society reward credentials or skill?

Students aren’t optimizing for what is best for society. They are optimizing for themselves, which almost always means getting a job.

The credential is a prerequisite but skills are a differentiator. Problem is, not all skills are equal.

Amazon isn’t going to ask you about your opinions on The Illiad, they are going to check if you can write an efficient algorithm to rob houses or merge sorted linked lists.

Ideally a mix of skill and will.

Earned credentials are a marker that you once demonstrated some sufficient combination of both.

Society rewards credentials and skill. So both are but one is easier to get with cheating.

"Should" is one thing, reality is another