They're copying a policy MIT has had for decades. Last I checked, MIT is still in the running for the best regarded university in the world.

I honestly support the downfall of this system. The truly great and exceptional will continue to be such. Degrees are nothing more than a signal, and a weak one at that.

That may be intended as hyperbole.

If it is meant sincerely, it is the kind of idea that falls apart in the actual world - especially if someone wants to graduate with Honors in a degree program that requires higher maths.

That isn't to deny there is a lot of societal bullshit involving higher education, but that's true in many aspects of life.