I think resume padding is prevalent and in fact I think these consultancies actually level the playing field for many. Most Americans can get work experience because they have personal connections, which makes it easier for them to get started. However, us international students do not have such connections or resources, but we do have the potential to perform at a high level. The job market is disproportionately biased towards experienced individuals. Thus having no experience will render thousands of well-qualified people jobless.
The fact that these people lie on their resume, get a job and then perform at the experienced level right away actually tells us that experience is overrated and that if you have the desire to succeed, you can overcome any odds.