I mean, we've known that universities aren't just looking at academics, test scores, and extracurriculars. If that was the case, the majority of colleges would have algorithmic admissions. (Although, surprisingly, there are some universities who do use a composite scoring algorithm to aid admissions)

Having flexible processes give institutions the ability to "shape" the incoming class—after all, isn't it good for marketing to have people from X different states or Y different countries represented in your student body? The campus climate is also dictated by the student body—do you want a cutthroat academic atmosphere (similar to Berkeley) or a party-rich campus (similar to LSU or Penn State)?