Is Harvard not allowed to admit the students they want? It’s the same situation in my local prestige college… very disproportionately slanted towards local kids that have been attending summer programs and the children of staff and faculty. So what?
Universities like Harvard typically like to market themselves as being the height of meritocracy, going so far as to proudly declare their miniscule acceptance rates. It's hard to square that with a very obvious preference for students from a specific background regardless of merit.
Edit: I’m willing to assume that Harvard’s admissions and development offices know what they’re doing, considering that they’ve been wildly successful for centuries.