All colleges and universities have honor codes. Most LACs have more stringent honor codes than larger schools, and these codes confer benefits to students. And even among LACs, Davidson’s Honor Code is one of the most extensive and central to its identity.
Davidson is one of the only colleges that I’m aware of that uses ‘character’ as an admissions criterion. The learning environment is collaborative and community-focused. All of these things help support the honor code. Yes, honor codes are not rock solid; however, I am confident if cheating were rampant as you seem to allege the college would know and address. It’s not that hard to find out through anonymous student surveys, etc.
I also disagree with this premise: “I just don’t think most kids, unless they have a ROCK SOLID MORAL FIBER, are not going to do whatever it takes to get ahead (see schools where cheating is the norm).”
It is not my impression that cheating is the norm at any college nor that students are in cut-throat competition to get ahead. Heck, some students can’t even make it to class all the time!
Bottom line: this doesn’t seem like a real concern – at Davidson or elsewhere.
Good luck to your daughter in her college search.