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
What is demotivating people is negativist-framing-obsessed doomer assholes like you dooming and glooming all the possible negatives and absolutely none of the positives. There's no actual unmanageable bad things occurring, and a ton of upside occurring.
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.