They seem surprised about this, but the cheating kids were always there. They just use different (and arguably easier) tools now. Blocking the AI won’t stop them from cheating, it’ll just make them revert to the old way of doing it.
They are not the same "cheating kids" though. How easy it is to get it to spit out your homework and how widespread it is encourages more people to give up, think "everyone is doing is, so why shouldn't I, I'm a loser if I work honestly", and do the same.
That’s exactly the same way kids in my school used to think about traditional cheating. Doing it well was considered a point of pride (amongst a certain group). I don’t think I ever understood it. It just making going to school a colossal waste of time.