The balancing may work if you have a degree from a university known for inflated grades, but consider a system where your highschool degree of a certain type automatically qualifies you for university education. Grades do not matter anymore but the students with inflated grades may have had a worse preparation for higher education.

Edit: in my example the university could change from accepting all students with correct diploma to doing admission tests to resolve. I know nothing of the feasibility of this though.