I'm familiar with this path as well, and have myself also probably benefited significantly from a slightly lower tier version of it. I think the issue is more

I'm familiar with this path as well, and have myself also probably benefited significantly from a slightly lower tier version of it. I think the issue is more that we have a lot of positive feedback cycles/signal boosting that occur based on early career opportunities. I don't think research fraud is necessarily part of it though, because once you're accepted into a PhD program at a top program you're probably going to graduate anyway; same with undergrad. But the signal boosting is very real, and I find it especially problematic given how much luck there is in things like getting into a certain college.