I went to Pomona College, which was a very different place than the one described in the Crimson article. While I'm sure cheating did take place, I was never witness to it, nor was there any cultural expectation that it occurred. Students tended to view cheating as just screwing yourself over in the long run (paying that much money to avoid get an education is a waste of time).
Harvey Mudd College, which was right next door, had an even more aggressive stance on cheating and honorable behavior -- one which was woven into the way pretty much everything was structured over there. Students were endowed with a huge helping of trust and were expected to act responsibly (and the actual student culture seemed to actually reflect this).
Both institutions provide excellent educations. However, PC and HMC are both small and neither of them have graduate students or research faculty. The faculty that are there are very accomplished in their fields, but their focus is on teaching.
I've also been the equivalent of an RA at MIT, where things are obviously a bit different. I don't think they're as bad as at Harvard, but it's clear that for many faculty the priority is not on teaching. Combined with the large size (~200 students) of many intro classes and this can create an environment where students do not feel that their success or failure is either cared about or monitored, which I'm sure makes it easier to cheat. However, MIT's technical focus may help to alleviate this problem since all of your later classes will depend on the stuff you're supposed to be learning now, so you'll be screwed later on even if you cheat. Sadly, I don't have a ton of data here -- all I can say is that out of the population of 40 on my hall there wasn't a culture of cheating. Getting bad grades was a shocking right of passage for many first-years.
Finally, my mother taught at a large research institution for many years. There cheating in the form of copying papers was rampant and the university seemed loathe to actually punish students caught in the act. My mother eventually gave up trying. These problems were worst in the large intro classes -- once things got down to smaller (<30 students) seminars and classes, cheating became both extremely easy to identify and rare.