For any college with a robust honors program, at least in theory, there should obviously be separate honor program grades.
In practice–I don’t know if they even considered it, but even if so, they already have a small sample size problem. So maybe they don’t feel like they have the data for it.
Who knows. But in general, I would agree it would be a very bad idea to rely just on these overall grades for robust honors programs.
And then of course that can be true of specialty schools, certain restricted majors, or so on. Grades at the level of the whole undergrad program are of limited use for any of that.