Guess what, life *is* a competition. Even before humans existed. The "survival of the fittest" is literally a life and death competition.
The same is true when it comes to achieving the lifestyle we want. If you are as good as an average person at coding, you're not going to get as far as somebody who is excellent at coding. NASA isn't going to have college interns writing code that guides the Artemis mission to the moon.
When it comes to the normal curve, it's true that it's not applicable at the level of a single classroom. A group of 20-50 students isn't a large enough sample to apply the normal curve. But a campus-wide population of thousands of students *is* large enough that the normal curve should be seen. If Harvard has 25K students, there is no way that 22K should get A's.
A normal curve, applied correctly, is the *most* fair kind of grading system.