Second you're assuming that the universities/processors will be graduatin lower quality students, which I disagree with. If there's one thing I've come to appreciate about science professors it's that they have little problem with failin large portions of their classes. That said the universities should not be encouraged to artificially inflate its graduation rates to show success in the program, that could be devastating.
I fully agree with this. It's already happening to a slight degree, in terms of 1st-year "dropout" rates that have been "Addressed" in the worst way possible: making 1st year easier.
To summarize, a university is sometimes measured by the dropout rate of 1st years. It was found that engineering programs had a high 1st-year dropout rate, so they were "directed" to correct it by university administration. But because accreditation requirements did not go down (thank God), what they did is make the 1st year courses easier, but the 2nd year courses were "harder" as a result, so the "weeder" year is 2nd year. This is an improvement to the metric the university wanted. Unfortunately it's
harder to move faculties if you only start failing 2 years in. It's a lot easier if after one semester you go "oh shit, this math is f'n impossible, I'll take flower arranging instead!" (No insult intended to people who do that) But after your 3rd or 4th semester of engineering? You already have piled on debt, and thus you feel you have to "keep with it" in that degree, leading to more overall dropouts anyways when they can't cut it in the long run.
So I hope the curriculum isn't being changed, just the costs.