I wonder if the whole "weeding out" theory extends to college education in general, and like you ask, how constructive to society that is.
I, very briefly and quite honestly, attended a lower tier state school that was an absolute joke. Shortly after I started, there was an outreach program for local high school kids where if they showed a high school ID, they got admission for the upcoming year. The head of my dept dismissed it and quipped, "It's ok. Anyone that wasn't meant to be here will just drop out after a year anyway and we have their money."
I, thankfully, ended up at a much bigger P5, well-known university. One of the controversies was the engineering departments were trying to get as many students as possible to the point of exceeding infrastructure and admitting lower quality students into the program. Upperclassmen I talk to said, "that's why everyone hates <1st semester math for engineers> and <2nd semester math for engineers>. They immediately weed out those that don't qualify."
"Weeding out" is what college admissions should be doing, not the departments. When the departments weed someone out, they've wasted at least a year of their life and a year in tuition, and demoralized them.
This is what really the "college for everyone" mentality has led to. If the kid shouldn't be there, or should have started in junior college first, we need to be more upfront about that earlier.