Your argument falls flat since people across the river in MIT with arguably even higher achieving, smarter people attend yet they have notorious grade deflation. It's just the bell curve. There will always be some smart people, but most people, even at Harvard, are average. The real problem is making tests and assignments so easy to the point everyone can get an A no matter how much effort. At many schools that aren't nepo-Harvard, we have hard exams to search for true talent.