That's the traditional argument for hazing rituals, sure.

That's a strawman's argument. There are benefits to college that go beyond passing a test. Part of it is gaining leadership skills be practicing being a leader.

But stack-ranking isn't an ordeal to overcome.

No, but the threat of failure is. I agree that there should be more medical school slots, but there still is value in having failure being an option. Those who remain gain skills in the process of staying in college and schools can take a risk on more marginal candidates.

Similarly, larding people up with student debt before pushing them into the deep end of the career pool isn't about improving one's moral fiber.

Yeah, student debt is absurd.