And it penalizes in many ways. Focusing too much on grades can be detrimental in graduate studies, despite graduate admissions focusing on GPA and test scores. I remember seeing 4.0 undergrads really struggle with research in grad school, sometimes to the point of dropping out. Certainly not always the case, but for the ones that did I think it speaks to your point about different skillsets.

Maybe worse was seeing the undergrads who passed on research opportunities out of fear it would distract them from keeping a high GPA.