Even if your system was pure Meritocracy that'd make 16th century Anglos proud, you'd still expect it to eventually come to this (smart people have smart kids, dumb people have dumb kids)
Pretty rare to find a well educated person who places no value on education. Guys like Peter Thiel (educated, but promote non-traditional routes) are outliers on that spectrum, in my experience.
It is current day anti-intellectualism. Nothing new, but unfortunately not dead either.
Huh?! 16th century's UK was a feudal society.
> smart people have smart kids, dumb people have dumb kids
You are confusing intelligence, effort, education and opportunities.