It should be easy to make the student body reflect the diversity of applicants: select them at random.
It's never going to happen, but still. If people don't like it then maybe the solution is to improve the quality of other universities so that getting rejected from Harvard isn't such a big blow in the first place.
Whereas NYU Stern or whatever is a world-wide network.
??
Then suddenly you have the ability to boot non-performers on the college path into something else.
One of the best things about adulthood is no longer spending every day with what one teacher called "the peanut gallery" hooting and squawking from the back of the room.