This is insane, and it's going to encourage absurd behavior meant to dupe this system - and don't kid yourself, there will be (see all the wealthy Hollywood types cheating on their kids SAT scores). There might be less nefarious antics if the College Board at least was transparent about how they calculate the score and released it after the test - but they're not. That's how you know this is a shell game, meant to give Universities an "out" for manipulating the demographics of their matriculating classes as they see fit. These incentives are wrong and unethical.
As a silver lining, maybe this will be the straw that breaks the camel's back and folks will start to realize what a fraud the modern "university" is. When the fiance and I start having kids, we've already discussed how college shouldn't be the default scenario. I hope others start considering this. It is mind-boggling to think that my kid could be disadvantaged specifically because I sacrificed to make a better life than I had growing up, so we won't be playing this game.