We definitely agree, but I would probably frame it as, allowing each individual student to achieve their personal best and their personal goals. A student who will never be able to comprehend theoretical physics shouldn't hold back the students who would, and the students who would comprehend theoretical physics shouldn't let the students who wouldn't be forgotten. The educational system needs to be dynamic from student to student, and each student needs to be pushed and assessed in a way that benefits the student and their impact on the world around them.
If we're not talking about tech doing the dynamic on-the-fly adjustments, I've heard positive things about two-teacher classrooms, as well as peer-teaching. The curriculum need to be updated all around, and I think those skills needed for students to be independent and self-reliant promoted a bit more than not at all. Empowering, rather than stamps of approval for passing the bare minimum.
AI is pretty exciting for this as well; imagine an AI that can do pretty well at assessing the level of understanding of a student. as the student progresses through an online module, doing assessments or playing games based off the curriculum, the AI would add/recombine content in the next page/module based on what the student seemed to understand well, the parts not super well, or maybe misunderstand, or just plain didn't get. it wouldn't fix the problems, but it would be an important piece in doing so.