The competition that surrounds getting into college for the "MTV Generation" is something of which previous generations have no conception. When you hear about students with thousands of service hours, dozens of AP classes, who are also multi-instrumentalists and multi-sport athletes all because they want a chance to go to the ivy league your paternalistic notion that "they all wanna be rap stars" seems ludicrous.
Is the system screwed up now, absolutely, but blaming the sense of entitlement of the kids seems disingenuous at best and debilitating at worst. There's an uproar over standardized tests because the tests are being put in a position to determine kids' futures, and tests are a bad way to determine those kinds of things.
I think you will see the furor over tests die down if we can get to a place as a society where we admit to ourselves that its OK to go to the local state university, and realize that which bubbles you fill in on the scantron sheet shouldn't determine your self worth. You'll have a way better chance of getting the "feel gooders" out of schools if you break the link between psychological wellbeing and test taking ability than by trying to toughen up the exams.