We observe that intervention leads to more students learning. I don't believe that "well they are adults they can fail if they want" is an excuse for a university refusing to take steps that they know would improve pedagogy.

I do agree that AI has made this basically useless. Rather than skipping homeworks or doing a bad job the students just cheat and there is no opportunity to notice and intervene. They get all the way to the screen-free final and fail.

I do not think that controlling homework does improve pedagogy at scale. Homework helps engaged and motivated students who are ready to accept the feedback. Maybe in your place they are majority and effects are visible. As soon as grades for homework become the goal, the Goodhart‘s law starts playing the role in the dynamics of relationships between students and teachers. AI has nothing to do with it, cheating with homework did always exist.