The reason students that don't cheat get pissed off about what they consider to be rampant cheating is due to perceived costs. While both students did pay the same for their tuition, the cheating student payed a lot less in effort than their non-cheating peers. If both cheating and honest students end up with the same grades, the honest students feel like they paid more for the same results.

I suppose this has to do with a flawed mindset about what they're paying for: they feel like they are paying for their grades and you're saying that they should be paying for their education instead. Unfortunately, like qntm said, the cheaters are competition for jobs and on paper, they look just as good as the honest students, despite paying far less for their grades. Of course, I guess that this is what rigorous interviews are for.