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That is the worst kind of discrimination in my book.That's only true if SAT score are a good predictor of "success" - however you define that. That's obviously not true for elite institutions since their candidates' SAT score are all bunched up at the top and within the MOE of each other. It's low-resolution. If you want test-based admissions, you'll have to design a test that shows significant differences among the elite schools' applicant pool.
On the hand, just having an "Asian attenuator" is, objectively, racist. The schools that do that will probably claim they just deemphasize applicants who don't have outside activities, which has led to formulaic portfolios of the "right" outside activities among high school students now, because "grades are not enough." Ugh. That's worse than just accepting the top SAT scores.
How can you tell which highly selective universities really have a sophisticated selection process and which are just running ethnic groups through different sized apertures? Elite schools that have legacy preferences have an especially hard job defending their policies.