This is not a new practice. It's wrong of sellers to advertise this type of decal job as real bridseye. However it's nearly impossible for a neophyte cue buyer to tell the difference.
I could send you a book with all the "exotic" woods you want. Just paste the decal over a blank piece of pine or maple and there you go.
Disguising wood to pass it off as something else is as old as making things. Ebonizing is the practice of staining wood black and selling it as ebony.
Why are you blaming the cue manufacturer for this? Big deal. It's a low end cue with a decal job. Do you think that the faux wood in your car is because the car manufacturers are "ripping you off".
The cue manufacturers aren't out there selling low end cues by falsely claiming that the decaled wood grain is the real thing. I am sure that there are some sleazy/clueless sellers out there who are passing it off as the real thing but it's highly doubtful that they are getting the same prices as the real thing.
Plus that decal sucks. I could show you some really nice "birdseye" cues and other wood decals that would blow your mind with the detail.
Stop blaming the manufacturers. They are only doing what the market wants and what the market (meaning majority of newbie pool players) wants are pretty cues at a low price.
All cues like this do is serve as an entry level buy in for new players. They will upgrade to better and "real" wood as they progress.
http://woodworker.com/cgi-bin/FULLPRES.exe?PARTNUM=138-113&search=Overlays
Here is the upgraded version, at least you get a thin strip of the real thing.