This also seems like a great way for Harvard to colonize as many institutions with graduates easily. If employers don't know about the compression at the top an

This also seems like a great way for Harvard to colonize as many institutions with graduates easily. If employers don't know about the compression at the top and they do value GPA and the reputation of the school, it likely creates a situation where a Harvard graduate gets employed at a company even when doing poorly on the interview because "Hey, we'd be stupid to not employ a Harvard graduate with a 3.8 GPA. They're top of their class from a very reputable institution." Over time this puts enough Harvard people in institutions and Harvard people have a reputation for alma mater nepotism (that I've personally observed multiple times). Almost all major US institution from media companies to banks to government have their upper ranks colonized by Harvard grads.