It kinda seems like that. College grades are already getting inflated. This is not a good thing.
I disagree that moving to pass / fail is a bad thing. Most universities are effectively already pass / fail, but they just record pass as "A" and anything else is basically a fail (at least in the students' minds).
You disagree, then post something that shows that pass/fail is bad.
At most universities, a MAJORITY of all grades awarded to undergraduate students are some version of an 'A'. Which is ludicrous. But there's no way out. Try giving a kid who has received nothing but A's (especially at Michigan) a B-. 3...2...1... they either drop the class (which is not good for anyone) or they and their donor parent lodge a complaint with the president, the dean, the department chair, on Yelp, on X, with the governor...which leads to a bunch of dumb meetings and changing it into an A anyway...and if you're an adjunct instructor on a semester-to-semester contract, you don't even dare because if you don't get that renewal you don't eat...So let's just give up on the charade of grading and move to a pass fail.
So your idea is another way of saying no fail, only pass.
You know, it's good to talk to someone who knows how it is, and even though my 50 years on campus now tells me different, it is good to see the cynical unvarnished truth. Thank you!
In actuality, the parent that just wants their larvae given a degree, or they will pull their funding is a cool story bro moment. Do some of those exist? Yeah there are all manner of people out there. There are also parents who want their children to garner knowledge, not just be handed a degree. But the idea you champion, which is exactly no failure allowed, will bring a learning institution to its knees quickly, especially in fields that require actual acumen. Where mistakes or actions taken without knowledge might end the inflated grade student.