The problem is if the system leads to demotivating people more than motivating them on average, which risks a negative feedback loop where people demotivate each other further and so on
I'd love to see the people's lives saying how bad it is now. My guess is they have every luxury afforded to them. There is strong negativity bias.
People are literally quitting CS majors because of this BS. Hopefully only the people who aren't meant to do it in the first place, but anyway.