I think the idea is good but such a system could probably be gamed easily. I am sure students would start to pad their resumes with great sounding projects without any substance.
The current system is also gamed easily. Anyhow, he seems to be referring to to elementary/high school grading which has little to do with a resume.
That's why I mentined the competition site above - winning a competition against hundredsthousands of other students is quite a substance - in the same way no one can claim they built something that u had shared on your GitHub-account with a timestamp and blogposts long before they claimed that. CVs got ~no substance for the record.
To clearify: I rather employ someone based on GitHub code than their CV/resume that is filled with bullshit anyway.