I do like that they're open to reconsidering the grading paradigm wholesale. I taught at a boot camp for a while and our highest-placed cohorts were the ones to whom we gave neither grades nor certificates. They plainly understood the game was between them and an eventual interviewer, not them and the school or instructor.

There's no magic rule that you have to give grades. A few colleges don't and MIT doesn't for the (I think) first term.