Im totally agree. I've told the exact thing to my students, im doing a service for which they are paying for, and if they cheat, they only cheating theirselfs, because out there, it will show.
In our institution the "directive" is to require two cameras, one frontal and one directioned to the keyboard area with open mic. Im living in a third world country where the best connection is 50 Mbps and i have some students that can't afford that type of connection, and others dont't even have two cameras, so they must use their cellphones and use data plan, so this add pressure to the test, (not to mention our power grid is really bad).
It seems that universities are trying to carry the same type of controls for a presential exam for a "virtual" one. It just seems wrong. I am teaching operating systems and computer networks and i work doing this everyday, and i've always do my tests with real life questions and two versions of each test, when they were presential, so i cant left the room when i need to, and left the students alone so i have little problems to adjuts my test to "virtuality". But it seems that some teachers are still doing memory tests, so i see that is a problem that must be solved by the teacher with a better exam, not by the student with intrusive controls.