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I haven't had time to read through everything, but:

"an admissions system that persuades people to structure their whole lives around it is profoundly inhumane"

Is exactly correct, and the race to the bottom here is a Molochian trap that can be fixed by adjusting supply/demand. More colleges, more seats at the elite universities, more colleges that carry an 'elite' designation, more emphasis on status from major/field and achievement than from school, and generally pushing back on cronyism. You can also make adjustments on the demand-side by not forgiving student loans (!) and rewarding blue-collar work more visibly.

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