Generally speaking, students at top universities are intelligent and hard-working. Their talent is not normally distributed, and this is increasingly the case as admissions becomes hyper-competitive. Not to mention, students self-select into courses to which they are most suited and likely to perform well.
If all students in a particular class master the subject matter, why should some students be forced to receive failing grades?
Should the purpose of higher education be to rank students on increasingly marginal criteria or to...educate?