What is the new definition of Cheating?

Talking to some high school students who are taking on-line courses.  They have on class period a day that they all get together in the same room and work on their on-line class.  The purpose of this may not be evident. It is a scheduling situation that is trying to remedy students who do not work independently out of school on on-line classes.  Many students, and often the best students, do not budget their time effectively so as to complete the on-line class on time.  When they find they are two weeks away from the completion of the course and they haven't even finished two chapters, they drop the course.  The school is still paying for the dropped course since we can't use the past practice of charging the student if they fail or drop the class too late.  A big waste of time and staff effort.  So now they all get together to encourage each other and help each other.  There might be up to 8 different on-line courses in the classroom with up to 15 students working at one time.  A staff member or associate is assigned to assist if needed.  It is more like an on-line study hall. So now that you know the make-up of the class here is the dilema.  On-line courses through the area college may or may not have a college teacher on hand to help with questions.  Often times when they are available it is through phone or email, both of which involve time and can be bogged down due to technology.  The students have decided to help each other.  Tests are taken on line and none are required to be proctored.  So the students again help each other.  The students explain that the tests are open book so using each others resources and computers is their definition of open book.  They also take pride in the concept that they might be signed up for one class but in the study hall situation they are learning at least three or more topics.  Is this a technoligal natives interpretation of 'Open Book Testing and On-Line Classes" ?  Or is this cheating the technology way?  I can see points either way.  How about you?