It does seem to me that where this is headed is toward a better policing of the accuracy/validity of information included in applications. Without better verification, the cheaters and liars and exaggerators seem impressive and are rewarded, while the honest look comparatively bland and have to look for another school.
This is true for both international and domestic applicants.
In dealing with in cheating in class, technology makes it easier to cheat, but also easier to identify cheaters, schools probably need to do a better job availing themselves of the technology that is available.