Why I am Not a Professor, or The Decline and Fall of the British University 17 years ago
I can't comment on the US experience, but as a student in the UK in the 80s and Canada in the 90s I concur with Mark Tarver.
This is not just a CS issue, it's universal and the real damage is being done in the second tier establishments where grade inflation and dumbed-down courses are endemic. The tier one establishments (Oxbrige, Ivy League etc) can still use their own screening methodologies for aptitude and smarts to minimize the problem. As a result---and to continue Tarver's analogy of the Cultural Revolution---the 'party' is looking after its own whilst the rest goes to rot.