I think universities are necessarily going to rely more on the "soft" aspects of applications to select students. It won't be a problem for top colleges - they could probably toss out the entire admitted class twice over and still select a world-class pool of students from the application pool.

I think it might be problematic for T2-T3 schools and state schools that are generally lenient when accepting AP credit. As for graduate and professional schools... that's going to be a mess. Harvard Medical School will only consider COVID Pass/Fail grades if colleges make those grading schemes mandatory for students; otherwise, students will have to submit letter grades. That's (1) completely heartless and (2) an arbitrary advantage for students who went to schools where P/F is mandatory.