Most elite universities have been forced (by market forces) into doing what Harvard is doing. The proportion of firsts being awarded by Cambridge, for example,

Most elite universities have been forced (by market forces) into doing what Harvard is doing. The proportion of firsts being awarded by Cambridge, for example, had already inflated substantially 20 years ago. The solution involves having, relatively speaking, "low" absolute grade boundaries (first-class honours at Cambridge is usually set around 70% of the marks in most subjects, third-class honours is 50%, pass without honors is even lower) on genuinely challenging exams, then using the raw grades for things like PhD admissions and scholarships. The notorious Maths Tripos is an extreme example of that strategy.