I think that has to do with the fact that most of the time your peers won't rat you out. As long as what you are doing doesn't specifically screw them over, they just pretend it's not happening. In some cases even if it does screw them over they won't rat you out. I remember once when I was in school my entire class got after because no one would say who's cell phone had kept ringing. All of us except the teacher knew who's phone it was, but we also knew if we said anything she would have her phone taken away, so no one told.

Perhaps that's because some people never have felt the need to cheat. Some people are smart enough to study and/or get help when they need it so they don't have to cheat. I think the fact that you assume every person on the planet HAS cheated makes you the dumb ass.

If something bad happens because of you cheating then you deserve it. If you fail because you were caught cheating, you deserve it. If you have to embarrass yourself to avoid being caught, you deserve it. The reason they deserve it is because the whole situation wouldn't have happened had they not been doing something that they knew was against the rules. It's as simple as that. Not cheating = Not being embarrassed, easy math.