It was pretty brutal but also highly effective at getting me to really study the material to stay above the curve and pass.
Also, from the context given here it's not as black and white as pass vs non-pass or "lowering standards" - it's about a rolling cut off on the amount of students they can take.
For some the truth may be that their lack of success may be external issues that can't be resolved by an additional investment of staff resources or just unsuitability for the program that can't be resolved other than by picking a more suitable major.
There is of course in the context of US education which wastes massive amounts of money so the actual answer is to stop wasting money on sports and invest that money in students but in all cases resources remain finite and some failure rate is inevitable.