> That's going to/already has significantly harmed the actual value (and signaling value) of a higher degree.
This is a ridiculously elitist, and unsustainable view, IMO. We should err on the side of giving people opportunity to succeed, rather than discard them. These are _people_ remember. Just because they were screwed over by the teacher union, they do not cease to be people, and some fraction of them might go on and achieve great things if given an opportunity. There will always be "socioeconomic" problems. This is further exacerbated by underdevelopment of vocational education in the US. In USSR/Russia, unless you actually want to study, you didn't make it past grade 9. As a result for the last 2 years of school it was no longer "fashionable" to be a shithead - all the shitheads were gone.
The dilution you're so worried about won't happen if it's structured like a MOOC. In fact the MOOC could (and probably should) be administered concurrently with the last couple of years of high school.
In the USSR (and Russia as it was in the 90's I don't know about now), the failure of high schools to provide sufficient education for "hard" higher education was implicitly acknowledged, and there were multi-year, free mail-based education programs administered by top universities which would, if you put in the effort, give you a better shot of passing the entrance exam, even if you're in a village high school where the physics teacher can't tell a Joule from a hole in the ground.
You'd receive printed materials and homework in the mail, and you'd be expected to study on your own (or perhaps with a bit of help from your high school math and physics teachers, ours were happy to help), and complete the homework. The explicit goal was to prepare you for the entrance exam, so it was kind of pointless to cheat or slack off.
These programs did not have limits on enrollment, but they'd get pretty darn hard towards the end, so a lot of people would wash out.
Given that US high school system as a rule sucks major balls for most people (in spite of being very expensive), I'm advocating that this understanding be formalized, and the first, optional, year is added to the higher education curriculum to focus on fixing that damage, followed by an in-person entrance exam. Feel like you can do the exam without extra preparation? Proceed straight to the exam. Feel like enrolling sooner? Take the courses in addition to your last year of high school.