Getting rid of grades is just masking the issue.
When I graduated high school in the late 1980s and college in the early 1990s, letter grade definitions used to be a C is average, B is above above average, and A is exceptional, with D being below average, and F fails to meet minimum requirements, and many students were happy ending up with a C. A statistician will tell you there should be an equal number of Bs and Ds, and the most prominent grade should be a C, but I am fine with any student giving their best effort and meeting minimum requirements getting a C. When I was in high school, the "A" honor roll only had like 10% or less of the class in it, and 4.0 honor roll was like 1%...Now it seems we live in a culture of grade inflation where "everyone gets an A", and with my kids' high school classes, like a quarter of them have 4.0s and like half are on the "A" honor roll, so the achievements of the truly exceptional students are very diluted. Kids getting anything other than a "A" (i.e. perfection) are seen as failures, that mentality carries over to College. The grades you get is college should help you grow as an individual as an indication of where you need to make improvements, or if your course of study is appropriate (or even if College is appropriate).
We need to stop the grade inflation and the expectation that every student gets an A in every class, and that perception anything less than perfection will ruin their future opportunities. Focus should be on students giving their best effort and growth, and let the grades fairly evaluate the student in that subject.