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Even if the standards have changed, I think it's pretty clear that the classes admitted now are academically stronger than those admitted in the past. There's a paradox for you.
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It may be a product of more people applying to MIT than ever before (thus a higher calibre applicant pool out of the top X% that MIT has to then select from), more so than MIT admissions policies per se. Perhaps MIT would academically stronger had it adopted admissions policies similar to Caltech (note I'm using the key word "perhaps" - since "academically stronger" can be defined differently depending on which stats are valued).