agreed.
also, i doubt that Japan's economy is doing any better than ours, and China's economy is only growing rapidly because they have almost no regulation.
to answer your question, i wouldn't really say that colleges are looking to create a student body full of "interesting people." they focus more on finding those who will be able to make a difference in the world. since test scores and GPAs don't help colleges find these difference makers, colleges have to look at things like ECs, work experience, recs, essays, etc. looking for difference makers is good for the school because it increases the school's prestige.
more often than not, the kids who get the best test scores, have great grades, etc. are not the students who are most capable of making a difference. a lot of these students, from my experience, lack the leadership skills and attitude neccessary to be a difference maker. these students would be like leeches to colleges; they'd just go to class, graduate, and then get themselves a decent job. they more than likely wouldn't be interested in helping out others/making a difference in other people's lives.