My experience has been that performance has gone down significantly since students have access to genAI. I probably get a fifth of the number of high performers that I was getting before. So I'm not worried about the hypothetical tiny minority who can write good prompts. I am worried about the larger group who could have done good work but ended relying on chatGPT too much.

The real question is whether to meaningfully "grade" papers that can be written with the aid of a computer at all.

Alternative systems (which have existed before LLMs) include at-home work being required to earn a seat at the exam, but marked for feedback only, with the exam being the assessment graded for credit.