Yet in the meantime UCLA got 146K applications this year, and UCSD more than 130K. Students with 4.3+ weighted GPAs and 15+ APs still got rejected. UC's admission officers (AO) in their pubic talks made it clear that academic performance account for only 40% in admission, extracurricular activities another 40%, and personality 20%. So, UC systems give AOs 60% of the discretion! How is it different from the garbage Xiaolian System that Chinese used before the Tang dynasty? But I digressed. The point is the demand for top-tier university is nothing but higher.
it should generally have the long term effect of making a slightly lower ranked school better ranked in the long term because all the smart rejects go there.