How about people that lie on their FAA medical  

Are they any less dishonest/dangerous?

The purpose of your FAA medical certificate is to prevent aviation accidents....period.  That is the only valid purpose for the FAA to assess your health.  It has nothing to do with financial gain or fraud.  The fact that they have been given access to a federal database to actually verify the accuracy of one of many questions on that form (and only for a select few) strikes me as a form of "Safety Theatre".

If the FAA was truly interested in aviation safety through medical evaluation, they would verify all of the self disclosure on the form. 

It's really pretty simple, just add one more box to check on the form..."I have providided ALL of my medical records to the AME performing this examination for evaluation." 

Now we're all on the same hook. Be careful what you wish for.