I am not arguing with you that it's wrong, I am saying the solution isn't as easy as you describe. This isn't a tumor you can cut out, it's a veiny cancer that is hard to see and widespread. I'd bet there were a number of individuals that knew about it, felt it was wrong, and maybe some did do something about it. Firing them would probably make the system worse, not better.
It's quite easy for a bunch of non-racist individuals to create a well-intentioned system that has a racist effect. It happens in many institutional systems, this year's Pulitzer prize went to a guy who showed that D.C.'s well intentioned and black-run criminal justice system discriminated against black people in their own city.
When you have systemic problems like this, you can't just swap out some individuals, you need to fix the system. My original point is that increasing Harvard's class size will be a necessary component. It may also require a change of leadership (e.g., president or dean of admissions), but this is not a personnel problem, it 's a structural one.