The problem is that whatever fills the void left by SAT and ACT will likely be _easier_ to game. Standardized tests are not perfect but they're a better signal than extracurricular checkboxes or professionally-edited essays.
Yeah...i'm pretty sure that is the whole intention. Us New Yorkers have been having the same problem as they tried to take away standardized high school entrance exams. Most doubt the intention was to make it fair -- the intention was to make it opaque so admins could pick and choose students rather than leave it up to people studying their way in.