I don't think you think through your posts very often. Go check out other schools' forums where they are on a pass/fail system and see how they actually feel about it. Very few schools are on a "true" pass fail btw. Most of them that claim to be pass/fail still rank via pass, high pass, honors, etc.
Pass/fail sounds great on the surface but there are some huge downfalls with it. For one it removes many students desire to truly excel (much like a communistic society sounds good in principle but would remove your desire to excel in reality). If you only have to pass there is less pressure to put forth 100% effort which may hurt you on the COMLEX/USMLE. Also, with a pass/fail there is one less measure for residency directors to gauge your performance (even though grades are farther down on the list, it is still nice to be able to prove you did more than the bare minimum). Also, how would you get evaluated for honors programs like Sigma Sigma Phi that have a GPA requirement (which actually is a big deal because it is one of the few things that is directly on the residency application "ERAS").
And to answer your question......most students who I talk to prefer to be graded. Those who want to do the bare minimum......maybe not so much.