Basically what I am getting from higbeys posts is that grades are not indicative of the character of the actual person and how smart they are, as the vast majority of it is just busy work determined by teachers to see how dedicated you are to applying yourself since that quality translates well to the work force. I would love to have something like the vulcans have in regards to education (much more individual focused and relatable to your study habits instead of linked to generalized tests and subjects) but this isn't Star Trek, and if you can come up with a system that allows for that type of dynamic be my guest.

Any system where you have to take a test at an early age to decide who gets to have a better chance at scholarships and a future is corrupt (I'm assuming that is how this is done since you said Honors), as it does not give a fair chance to all people and is not representative of their IQ level (which, is simply an ego test. IQ does not mean anything and it has been proven many times that there is no one way to determine someones intelligence). Even if it isn't a test and it is based on grade point percentages, you simply cannot tell who is smarter and more favorable for the future through a system like that. Especially at a young age. Everyone is different and deserves an equal opportunity at proving their worthiness for success. I don't see how that stands up as correct when a specific school gets better scholarships and better opportunities, let alone when it has only 40 people.