School boards here, and I'm sure many other places, decided to nix grades from March onwards after the pandemic hit. The announcement wasn't made until closer to the end of the term. I remember some parents being furious claiming that their kids "wasted their time" on remote school if a grade wasn't being assigned.
I've had this discussion many times, and as a university drop out, my opinion has always been similar to yours. One thing I've learned is that debating the merits of the higher education system is right up there with religion and politics in terms of topics to avoid at a dinner party.
People take great pride in their educations (read: pieces of paper). They can take great offense to the institutions and systems that produced those pieces of paper being challenged. These values have been passed on and hardened through generations. This is the first thing that needs to change before there's meaningful reform, and it's going to take time.