That works fine when you have classes with 100+ students. In the ones I attended, it would range from 15 to 40 (the latter being considered high). Lower numbers tend to be impacted more by noise.
>Consider an employer or graduate school admissions committee that needs to decide who to interview. Looking at curved grades makes it easy to pick the top X% of students
As an employer, I'm not interested in the candidate's ranking in the class. I'm interested in their skills. While one is often used as a proxy for the other, I do not.
As a student, I want feedback on how much knowledge I learned, not how I did in comparison with the class. This was the original purpose of scoring tests.
Having gone through the PhD route, I know that "A" grade students who were always focused on the metric of relative ranking rather than knowledge acquired eventually were more likely to do a poor thesis or drop out, compared to "A" grade students who were focused on acquiring knowledge.
This was more acute from students who came from top undergrad schools: Very competitive background with heavy curving - and they would take their A as a faulty indicator that they were "doing well". In grad school, even though the courses are more challenging, most professors give A's and B's. Only rarely were C's given. The professors want to focus on learning and theses - grades are a distraction. Suddenly these students were getting A's, thinking they were doing well and not learning much. Their internal barometers were measuring the wrong thing, so their research suffered.