I've always thought that you Ivy folks overstate your case here, and I feel like your post gives me as good a chance as any to voice my thoughts.
State schools are less competitive, and that's why we get fewer people into medical school. I admit this, but I'll give some evidence to suggest that they are not grade inflating in the way that you suggest. The average GPA at my state school's science college is ~2.6, which is way lower than any of the private schools I know of. And it should be, I agree. Something like a third of my entering class has already failed out. Not very many people (<10%) get As in my science courses. This doesn't seem like grade inflation to me. Only about 10-20 students out of an entering class of 4000-5000 get into medical school from my institution. Maybe my school is not a good example, though.
I've always been confused about the emphasis on SAT scores anyway. Certainly, SAT scores mean something, but we know they don't correlate perfectly with college performance, so why do you cite them? Even if your argument is more subtle [i.e., that a higher proportion of smart people attend your institution (as determined by SAT scores), and the non-negligible correlation of SAT scores with college performance suggests that these students are 'better' and that the curves imposed on them are 'deflating'], I still don't quite understand why you pick out state schools as your scapegoat. As I stated before, to my knowledge, the Ivies and upper tier Privates are extremely well represented in medical school.* This suggests to me that (while I admit some of this is self-selection on the basis of superior self-promotion skills, interviewing skills, etc.) admissions committees acknowledge that a high GPA at a prestigious school is better than a high GPA at a less prestigious (or, dare I say, rigorous) one.
I hope that you will take the time to respond to my thoughts. I've never understood why you Ivy/Private school folks get so up in arms about this. Finally, I hope that I don't sound defensive. That is certainly not my intention. I am genuinely curious about the thinking process behind your statements.
*I apologize but I could not find any data on this. I welcome challenges to this assertion. I googled "aamc data on where matriculants come from" and found
these charts, but they don't give data on the number of candidates
accepted from particular undergraduate schools.