The "compromise" that my university found was that if you were caught cheating in Science & Engineering school, you were given (informally) an ultimatum: either this can be escalated to the official channels, and you may be expelled (or perhaps nothing would come of it), or you can go be someone else's problem and transfer to a different subject. Typically the business school, because they're not big on ethics anyway.

As a TA, I once stumbled upon a bunch of students who had been copying each other's labs, because one student was brazen enough to turn in a printout with a the gmail header information across the top, indicating it had been received from another student. So I looked at that student's page, and noticed that they had somehow completely screwed up their rounding, and used way too many significant figures, which I recognized from another student's assignment. Digging through the pile, I found others that had rearranged stuff enough that I probably would have missed them if not for their exceptionally dull friend.

All told, 9 students had turned in the same exact assignment. 8 took up the offer to drop the course and switch majors, 1 faced the music, took their zero in the course, but did stick with the program.