Creating higher visibility doesn't quite seem like "hacking the application process." Of course, it's a bit of a ploy, but no more so than any advertisement has ever been.
I dropped out last year and my experience so far has been exactly the same. I actually gained the majority of my experience while working on a startup that I co-founded.
Personally, I don't see any reason to hesitate to advise CS students to drop out. It was the best financial decision I could have made.