Maybe this is too cynical, but it feels like going P/F is just another way to push students into extra education and free labor.
Sure it's marketed as a way to decrease stress, but if anything it concentrates all that stress into smaller and smaller time periods. When preclinical went largely P/F, it concentrated all of that stress and work onto a single exam day with a very flawed exam. Then step 1 went P/F and now only 1 year of med school even matters. Now some IM residencies are claiming they won't even look at step 2, and more and more schools are going clinical P/F.
So what's left to distinguish yourself?
1) School name. So absolutely forget being close to family or picking a school based on culture or cost, everything relies on the brand name value.
2) Extra accomplishments and years of education. Now students will be taking research years left and right and stacking degrees in an effort to stand out. More labor for the academic labs. More tuition for the school.
It's also very obviously a way to allow top PDs to just pick what their residency class looks like without any justification (e.g., T10 grads, URM quotas, favors to colleagues, etc...), and it takes the burden off of medical schools to educate and produce top grads.
I can't see how this can be at all good for students or encourage any sort of equity. Top med schools will continue to admit students who were privileged enough to begin their admissions journey shortly after birth (or at least upon entering college). Doctors will continue to burn out as they push their education into their 30s and even 40s. Medicine desperately needs a more aggressive "up or out" culture, and instead we're moving in the other direction.