Yeah, it's probably the best solution we have at the moment. Still, I think it's important to acknowledge the flaws so we can collectively think of solutions for them.

are they really in a position to get a degree?

There isn't a straightforward answer to this. You're going to see a lot of disagreement on the purpose of a degree. Some argue that it's a testament to your proficiency in that area. Some say it should reflect your ability to hold a job related to that degree. There are probably others I'm not thinking of. Test-taking abilities are a decent proxy for these objectives, but it doesn't perfectly reflect either.