[WS:] The multiple choice by itself is not that big of a problem (I used them too for the very same reason as you did ;)). The problem is how standardized testing is designed. As I said before, the main goal of those tests it to produce a "Bell curve" and they do produce it regardless of the cognitive skills of the students. They achieve that by the combination of test design (many relatively simple tasks) and time pressure that makes it very difficult to anyone to complete these tasks in time. In other words, they create the "Bell curve" literally by breaking people up at different points. Their fault lies in artificial creation of false negatives - people with lower scores than their actual cognitive ability would warrant. Of course, they do it, because college administrators demand it - a Bell curve makes their task of denying admission - or rather justifying denial in meritocratic mumbo jumbo - easier.
I can think of a multiple choice that tests student reasoning without creating false negatives - but this is not how the SATs, GREs and the rest of that testing-industrial complex is run.
Brad: "I must say the CC folks are much better at working hard and engaging with the material, while the other students know how the system works and how to work it."
[WS:] Ditto.
Wojtek