While the ACOM and KYCOM numbers aren't good, a 90% 4 year rate wouldn't be terrible and I believe there are a few MD schools that also have numbers like that. Also in the case of KYCOM, I'd actually applaud them for not allowing inadequate students not to continue (if that's what happened) while at the same time being disappointed by the low admission standards. Plus if there's only 11 people not graduating it doesn't say a whole lot without knowing why they didn't graduate. I know 7 or 8 people in my class who were doing fine academically but dropped for personal reasons or because they just hated it. If that were the case at KYCOM (who knows what the real reasons were...) then only losing 3 or 4 people for academic reasons seems much less egregious to me, especially if they're making sure people who shouldn't be treating patients aren't going to get to do that.
Why? it's only the 9th largest med school in the country with many of the larger ones being MD schools. If you look at the AAMC enrollment data in the link there's actually 7 MD schools in the US with over 1,000 people enrolled, so class sizes of 250+. Some of them (UIC, IU) have class sizes well over 300 (enrollment of 1,4000+). Seeing as my school has historically graduated most of it's matriculating students (my year was rough due to changes in administration, curriculum, and several people dropping of their own accord or taking LOAs for personal reasons) and has had a placement rate of 100% four years in a row followed by 99%+ this year (2/~250 went unplaced this year), I don't see why it's criminal. I agree with the rest of your statement, but I'd also add that if a school takes a borderline candidate, especially off the waitlist, and that person ends up not being able to cut it that the school should let that person go instead of dragging them through to end up as a crappy doc or not match at all.
https://www.aamc.org/download/321526/data/factstableb1-2.pdf