Fundamentally it's a hard problem: the admissions require more information than is available. But...
> All this fiasco does is demonstrate how unnecessarily reductive the whole concept is.
...there never really was enough information. This is an important factor IMO. The system has always been unfair, now it's less fair and in a colder, more obvious , more systematic way that resonates with the current political climate around technology. Politically it's hard for this government to get away with standing by a policy that adversely affects poor students in the same way it would have been hard for a left-wing government to institute the current fiscal policy.
>kids
Nit: almost all of them are now legally adults. At university they can look forward to this twilight age where they are treated as an adult when it's about financial obligations and treated as a child when it's their institutions forcing policy upon them.