Yes, there is no point in grading homework or essays. This has been largely true in India and China anyway, and the US will have to move to similar model of standardized tests and in person exams. Universities are anyway proxies for IQ filtering. It is perhaps impolite to say so explicitly in the west, but people will have to confront that.

Maybe for "soft" subjects like History and Philosophy, where almost nobody who does those courses actually becomes a historian or a philosopher... But there are plenty of subjects where you actually do learn things that are useful beyond university. Engineering, law, medicine, chemistry, etc.