Too often, grad school applicants are just kids that have overachieved in academic settings and think to themselves “I’ve been good at school my whole life, why not just do school forever?”. A lot of them would actually thrive in industry but they just continue doing school out of inertia.
Grad school could help those kids figure out if they like working in industry by mixing in courses taught by industry folks and/or pushing for internships rather than traditional RA positions.