We would rather the vast cognitive middle class take out thousands of dollars in debt and drop out than "admit defeat" by encouraging them to pursue skilled careers in nursing, maintenance and repair, and etc. I am skeptical that the billions of dollars of tax money and individual money spent on the pipe dream of sending every person to college has been worth the expenditure.
Plans that ignore reality are doomed to failure, no matter how well-intentioned. And the reality is that not everyone is cut out for Harvard.