70 - 90% of my grades in high school were homework. I tested out of 2 years of math and 3 years of Japanese by studying the curriculum and learning everything. None of the classes I tested out of counted towards my GPA. I passed 4 AP tests, but my GPA was 2.4. If principal hadn't kept me there I would of been in and out in 2 years. I suspect he didn't let me leave because the high school gets funding from the state per student enrolled.
I did four years of Japanese classes in one and got a five on the calculus test, but my GPA was below the cutoff for engineering, so I had to get a professor there to write a special recommendation to let me in. Somebody with a high GPA who passed no AP tests has preference in admissions over me.
I've got nothing against using test scores for admissions, but grades are incredibly subjective. 99% of the time they're not a measure of ability, they're a measure of obedience, and your ability to persuade teachers. And colleges, by extension are choosing to admit people who are more concerned with appearances than with actually solving the problem at hand.