Although this is a great point, you have to see it from their point of view. People can't relate to something they have never even thought about being possible. Secondly, I assume most of the harsh responses on this thread are from people who are born in the US. If you have family abroad or are an immigrant yourself, then you would know American citizenship is one of the hottest commodities in the world and with that comes extremely harsh rules. "Just get a SSN," or "why don't you just lobby your congressmen" are very naive responses. Until you have dealt with the issue of American citizenship you have no idea how difficult it is. People wait in line 10+ years to get citizenship here (and that's with things working in your favor). Yes, she's whiny as hell and extremely stupid sounding attacking people based on their race, but the issue here is the inability to do anything within your own country.
While this is theoretically nice, it would create an even greater backlash than current URM policies. Why even bother with standardized tests? Should we just all take a pass-fail test and see who can write the best heart-wrenching story? Yes, I agree that numbers do keep out tons of qualified applicants and let in some socially inept people, but I'm not sure having a hyper-holistic approach would do any better at making it more fair.