Those are who families who scream “meritocracy” should be directing their ire at, not the applicants (usually with more impressive results and stories considering the background they grew up in, compared to—sorry!—a hum-drum suburban also-ran) _think_ they’re better than, which ultimately is what a meritocracy boils down to.
Ultimately the only answer that will give you, or your kids, peace is accepting the fact that schools will curate the student body they want. They’ve admittedly done a good job at it! Complain all you want about Harvard tilting the scales, they’ve done an amazing job maintaining their reputation and exclusivity. If they don’t accept you, they don’t want you. If they do, they do. It’s that simple.