On the other hand, these students are proving that AI is as capable as a student (in their eyes at least) which bodes very well for employers. Limitless numbers of cheap workers.
Limitless numbers of cheap workers are great for employers when they have them. Not as great when everyone has them.
Who is going to pay for the goods or services provided by your limitless number of cheap artificial workers when everyone else has also replaced their natural consumer human employees with their own cheap artificial workers?
So whether it bodes well or not depends upon whether that gap exists or not. It's probably job specific.
A desire to learn generally only gets you to a superficial level before you get bored and realize there is a lot of hard work before you could get a useful level of knowledge. Getting deep requires years of focused effort and that almost always means forced effort. The few adults who learn a musical instrument or foreign language prove the point.
If getting the degree is just a certificate to allow you to get jobs, that’s all a lot of people will care about.
We need a system of apprenticeship. Some school, yes, but we have over indexed on school and forced it into a role for which it is ill suited.