@Thomas,
Well... we have kind of gotten on a different argument. Originally this thread was about grades and I was arguing that the fact that the number of good grades being awarded didn't hurt anything. The discussion of whether college is a worthwhile enterprise at all is a completely different discussion (and if it isn't, then grades are rather irrelevant anyway).
You kind of got me stuck between the two arguments. So for this response I am going to drop the whole discussion of whether grade inflation is a problem (or if it exists at all).
I concede the point that college is not a requirement of success for everyone. Obviously if you have the raw talent and drive to start a successful and innovative technology company (and you come from a wealthy family as most of these guys did) then perhaps a college degree is just a waste of your time.
But let's look at education from a societal point of view. Underneath these demigods are thousands of the people who will be doing the real work. These people need to understand computational algorithms and linear algebra. They need to have exposure to different artificial intelligence technologies and be able to talk intelligently about distributed databases.
Could you imagine a modern society existing without a strong education system right through university level?