"Necessities"

The common reality of our schooling system is, you need to pass it (whatever the subject may be), your GPA should look better than the rest, or imagine how this could increase your chances to a better college or university. All things that we as students have heard throughout our lives because it's just that important to our parents, teachers and of course, us. We all push our selves to the limit as students to try and pass the standardized tests because after all of the work it all leads to a test, which will eventually lead to the final grade that will define us. However I would like to know something, why  is a letter grade that important? Why do we have to walk around with a label tagging along, telling whether we are applicable for the college or not?  Of course, we need them to tell if someone is smart or not but why is it this way. Everything would be much easier and peaceful if we were all on the same level when it came to education. No one would strive compete and become the best at everything for the fact that others would look up to them and not at them or down on them. Sure, competing to fulfill your innermost desires is awesome all in all but is it necessary?