I'm not worried about the cheating, I'm more worried about the multiple choice like questions that require practically no effort for the computer to grade, and give the student an 25% chance at an A regardless if they know the material or not.
While you are probably just intentionally exaggerating, a multiple choice test does not give any student a 25% chance at an A (assuming 4 choices per question). That would only be true if there was only one question. With even 2 questions, the chance of even passing drops to 6.25%. With 3 it drops to 0.156, and so on.
I would agree it is much easier to write a crappy test when it is multiple choice though. Poorly thought out answer choices can give clues as to which options to rule out. I have taken many tests where almost every question could at least be reduced to a 50/50 chance without knowing the answer at all.
A well written multiple choice test can be just as difficult to pass as a long answer or essay exam. One obvious tactic is to determine how students might make mistakes in the problem, and then have that wrong answer appear as a choice. Another great option is to take off points for every wrong answer, so students are forced to leave questions blank instead of guessing.
Even though MIT's intent is to make student selection easier, they will still have strong incentive to put significant effort into the selection process. The best thing MIT has going for it is that it admits a higher percentage of elite students than other schools.