The problem with not having grades is that the students who are best at social interaction will tend to do better than those who are not. Scores need to be objective, not subjective, and scores are necessary to give an impression of a persons ability, when he later applies for a job.
> scores are necessary to give an impression of a person's ability That's what standardized tests, like bar exams and medical licensing exams, are for.
Medicine is different because it's about a lot of knowledge and being able to product that knowledge when required (same with lawyering). Programming is different in that you look up the information, the body of relevant info often changes, paradigms change constantly. You can't standardize this field (yet).