I suspect that parental assistance on college admission essays has happened for decades. However, with the hyper-competitiveness to get one of a very limited number of admission slots, some parents (wanting to give their kids what they want, not what they need) are doing anything to help them. The modern "helicopter parent" is the stereotype of this type of parent.

The current application process is a bit archaic. Clearly, with the advent of the Internet and the quick and easy exchange of information, colleges should ask for portfolios of sample, graded school work. These portfolios should supplement applications and may be referenced when there's a need to compare the relative quality of two seemingly equal candidates or any question about the authenticity of the a student's application (including essay).

(On a side note, I'm surprised that more software developers don't keep and share their own portfolios of sample work for prospective clients/employers. A representative body of a person's work is clearly more of an indicator of the quality and skill of a person than any statements/certifications on a C.V. or résumé could possibly be.)