This is such an interesting debate (except for the unnecessary personal attacks on alea). My DD has just moved house and is now 6 miles away from the primary school my grandsons attend. They will be 7 this weekend, so a few years to go before secondary school. They aren't going to move to the nearby school for the time being, maybe not at all, because the children like their school and are doing well. Their local school has excellent Ofsted ratings, but the one they go to is smaller and they are happy there with all their schoolfriends, who will be going to the same high school in due course. So now my DD is pondering on whether she has taken two places that could be wanted by a family moving into the catchment area they previously lived in. Her children are her priority, and their happiness. If they make new friends nearby and would be able to get a place in the local school, perhaps they'll transfer, perhaps not. It's not all about who's got the money to buy a nearby house, profit-making in desirable catchment areas, or jumping through hoops to get church school places. It's a parent's wish to get the best they can for their child by whatever means within their power.
As others have pointed out, it's not an offence, calling it fraudulent is rather extreme, and it would be better if all schools were of a good standard, but blaming the parents for trying is missing the point.