Agreed.
My school was one where no more than 5% of the class received honors. It is a part of our dean's letter to show the distribution. I still had to fend off multiple questions in interviews as to why my performance declined from pre-clinical (all honors) to clinical years (all goods or very goods)
As a sidenote, it is OK to mention how stingy schools are at handing out honors grades as part of your response/defense. It comes off as less defensive if you can pick a minor and correctable flaw and then highlight ways you fixed it between 3rd and 4th year (almost everyone honors dermatology rotations. If you didn't, I'd seriously consider choosing another field). Simply railing against one's school and one's graders only makes it look worse in a sea of applicants who already have all honors (again, this is from my personal experience as someone with no clinical honors until late 3rd year)