My daughter recently took a course where the average final exam score was around 30%. Nobody hit 50%. Nobody completed the test. They were graded on the curve, as everyone expected they would be, and the A's, B's and C's were distributed pretty appropriately in the end.
In your world, apparently this was simply the dumbest cohort of 4th year university students ever to walk the halls, and they all deserved an F ??
Or maybe, just maybe, it was a brutally difficult exam.
Grading on the curve works perfectly fine if you realize that the student cohorts tend to be more consistent than the tests are from professor to professor, year to year.
The only way "your way" makes any sense at all at approaching fairness is if the tests are standardized... but that creates a whole whack of new problems. -- If the test is standardized, then students are incentivized to just study the test, not the material. Meanwhile, In many advanced degree courses, the material taught from semester to semester varies by professor and year for the same course. How do you standardize the test when even the material is variable?
"This is fucking stupid."
Unsurprisingly the teaching staff at Harvard know a lot more about this than you do.
High level undergrad course work, and graduate level course work isn't like a primary school arithmetic or spelling test.