I think a big impacting factor from the adjustments made to the program is the fact they created study groups.
Many students are socially isolated, that is by itself something that creates anxiety and depression. Being in a competitive environment without social supports doesn't help.
Human beings are social animals, we need physical touch and proximity to survive. Even just having a conversation with friends and family is something that generally relaxes people. Sure, it may not always be the case but if you ask me, human beings have evolved in a way that we have become very dependent on eachother's physical presence for our mental/physical well being.