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Except that costs a lot of money. Prometric is in business for a reason, and all they do is provide exactly what you describe.
That's all great in theory but how exactly is that going to be done, planned or funded? You really think schools are going to spend that much money on camera's, metal detectors, security systems, advanced proctors etc for every test in a particular school? Not a chance
Ideally the best system to me IMO would be to have multiple standardized exams. Kind of like how there are the SAT's, AP tests and SAT subject tests in high schools. Different standardized tests to analyze different skills and the like. There's enormous grey area in med school admission; some of it such as accounting for an applicants context, ECs etc is necessary. But the degree in variation in trying to account for academic performance such as a GPA from MIT ChemE vs Sociology from State U can be simplified and reduced greatly.
We can cut the expenses easily. Maybe not security cameras but having several proctors like TAs helps. But most importantly, why can't the students simply drop all their stuff early on before being seated for the exam? Without cell phones and backpacks around, they can't cheat. Few of my classes did that for exams and there were no cheating reports whatsoever, because there were no resources available.
Likewise, going to the bathroom during the exam was forbidden (i.e. turn in the exam first, then go to the bathroom). Helps a lot with this approach. And it saves money because it's free!