Your post tells of just one extreme of what is wrong with standardized testing. It is the extension of teaching the children how to write the particular format of test that they will be encountering. It has little to do with education, and a lot to do with bureaucracy and politics.
My dd is at home this week while the rest of the Grade 3's at her school write a standardized test. I have the support of the administration and her teacher for keeping her home. I think that if I heard of cheating happening, I'd check the facts and then make it part of the letter that I am writing to tell the government body that administers the tests why she's not writing. I am not sure I'd be brave enough to include the names of the people who were involved.