Apparently the kids of these celebrities didn't know of the fraud. So I wonder how they are reacting now? Wouldn't you think that your parent(s) had so little confidence in your abilities that they had to buy your way into university? What does that do to your self-concept?
Depends on the kid. If they're of the Kardashian/Hilton/Kushner mindset, they won't care because it will not affect their lives.
If they are functional young adults with self-respect, I do feel sorry for them if they truly had no idea because yes, it would be horrible to learn that your parents had so little confidence in you.
It must be hard to be one of the parents too (not that I'm justifying their actions) - imagine having all the money in the world and you still birth a spud child who doesn't live up to your inflated expectations. Ha ha ha!
I still think university entrance exams should be based on pure aptitude. Give every kid the Raven's Advanced Progressive Matrices and then make them sit a degree-appropriate aptitude test and take the best performers. Control for socio-economic status. Easy. The whole extra-curriculars/interview thing just privileges the rich, and has no purpose.
The thing is, colleges don't want the most book-smart (/test-smart) students. They want world changers. They are all competing to produce the next Gates/Musk/Jobs/Zuckerberg. Or, failing that, a Nobel prize winner or celebrity will do. That gives them reputation they can sell to others.
Taking tests well doesn't correlate to seeing a problem, taking initiative, asking the right questions, sourcing the right information, coming up with and evaluating solutions, getting buy-in from others to execute the best one(s).
This is decidedly non trivial, but teenagers can show parts of it, particularly initiative and perseverance, through dedication to a hobby, team, volunteering gig, or part time job. My parents are fairly certain I got my scholarship and my sister got into every school she applied to on the basis of our backcountry backpacking experiences (plus test scores writing skills, etc). This was 8-12 years ago, elite admissions were plenty crazy already.
The other thing about testing-only admissions is you create a culture of cram schools and, unfortunately, cheating. Education stops being about actually learning useful skills and using them, just about catering to whatever authority sets the next test. That...doesnt do much to move society forward.