Is there something terribly wrong about college admission process?

I have done alum interviews for my undergrad college. I know full well that not all of the applicants will ultimately complete the entire application, and of course a certain number will be rejected. My alma mater makes it clear that our jobs are to 1) help students who can’t visit campus get additional information about the institution, and to 2) provide additional feedback on the student that otherwise might be missed - essentially, a thumb up/down that the admissions office is fully free to ignore.