Perhaps, but crediting something as “traditional, arranged by” is not much different than claiming it as an original composition when it comes to royalties. Since traditional songs are not copyrighted, you don’t have to pay anyone else a share if you credit it as traditional.
We’re clearly off on a tangent, but I disagree with your notion that doing the traditional arranged by is little different from claiming it as an original.
By noting it as traditional, you are saying I did not write this. It is old. So old we don’t know who wrote it.
An area of some interest for me as a musician playing some traditional, arranged by us, songs. Lily of the West, by way of example.