I worked in lab with several people like you described. Straight A students but complete morons. The only reason they had the grades they had is because they spent every waking moment doing homework or studying. 0 life outside of school. When it came time to do something in lab none of them could apply it. Even basic mass and energy balances they had no idea how to apply it. All those kids were going to get jobs right out of college or go on to grad school. What happens then? I'm genuinely curious how these peoples careers turn out because they cannot perform outside of a classroom environment.
The problem is that colleges reward students too much for simply working hard. It is never about how much you know it's about how much you're willing to work. I guess that's what most companies in the industry really want though.
Anybody can get good grades if they put in the work which allows for these idiots to get through. Hell I had several classes reward students for just showing up to class with like 15-20% of the semester grade. It's such a joke. Every class should only have 1 grade which is a final exam on the entire semester. Nothing else should matter. 1 test and 1 grade. No curve. Just show me what you know at the end of the semester. Instead It's homework worth 40% which half the class cheats on anyways. Also since the large majority of kids in college nowadays are dumb as shit, the curves on the exams are ridiculous. I've been in several classes where people can average less than 70% on exams and still easily get an A in the class. Everybody just laughs and cheers when they see a curve on the exam. This makes college tailor made to these dummies. All they have to do is
1.show up to class
2.copy your buddys homework (who copied it from someone else)
3.bomb the test but it's ok because everybody else did too - your 60 will end up being a B
I would honestly estimate maybe ~4/100 kids in my classes did the homework on their own and performed well on the exams and earned the grade they got. Yet somehow there were wayyy more kids getting A's. It's a terrible system. this is coming from somebody who went to a state school so it may be different, but if you ask me college education is a sham. And to answer your question on why universities allow these students to be pushed through it's obvious. Money. The universities aren't ALLOWING them to be pushed through, they ARE pushing them through.
At this point I think more and more people realize what a joke college is, but at this point it is too late to stop.