I completely agree...expanding on your idea, one thing we forget is the folks who fail. They aren't complete numbskulls, they arent dunces, instead they alao have some ability.
What happens in our education system is that it doesn't cater to the need of the student. We just put a student who gets above 80 percent in Science group, others get into Arts etc. This isn't the way to go. Getting 80 percent doesn't mean you are a master in all things. A student who is very bright mentally might not be able to fit in the rote learning system we employ, hence he gets low grades and is regarded as a failure and slowly within 3 years or so he flunks out of school and gets into drugs or something like that.
His life gets ruined.
What needs to be done is cater to their specialties. For example, I have seen alot of children who are complete failures in school, they couldn't do a ratta on chemistry formulas or Maths equations or anything, but they are top level in computer stuff. Students who do not achieve in class should be adjusted somewhere.
If a student doesn't achieve, then after getting his guardian's consent, put him in some other program e.g a child who doesn't get maths or physics should instead be taught farming so he can help his father. The tag of educated or skilled will attach him and he will do something he knows due to his father. It's a win win situation.
Similarly, the son of a plumber should be taught plumbing if he doesn't achieve in Maths or physics...he would have a diploma to carry, will be a skilled guy with some knowledge etc.
NOt everybody is a complete idiot, everybody has some speciality, and that speciality need not be of Maths or Physics or a sin formula.