Not lowering the bar, changing the metrics and possibly even raising the bar.
I had some conversations with a couple professors there before I graduated in the mid-1990s, they saw it as a two fold problem. The geek culture makes it hard for anyone not within it regardless of gender, second they saw that MIT, Stanford, and some other top schools had more alumni donations and also tended to have more technology startups and such closely related to the school which also sort of affected the school's income but also affected future placement of current students which has a pretty large impact on getting the best students in the future. The thought at the time was that the geek culture was just bad for the school, period, they produced a lot of talented engineers but maybe not a lot of really successful people in the bigger picture.
I don't remember the exact numbers but I want to say something like over 50% of the SCS students switch majors out of SCS or left CMU, maybe even more. I want to say 250 students were pre-SCS and something like 50 graduated, but 250 seems way too high though. I can also say that I was a mid-tier geek, I had some experience and some chops but there were dudes who had been paid programmers when they started as freshmen, it was at times intimidating. I do personally know a half dozen folks that changed majors because they decided they couldn't hack it before things really got difficult; good smart people. It can be a very intense pressure cooker, say 50% leave SCS, of the 50% that stay, maybe 90% have had a fair amount of experience and then the 10% that don't struggle with tools and just basic things before they can even do the work. Life's not always fair but that environment was definitely self shaping. I have no doubt in my mind that some of the ones that switched majors could have made it and were maybe a bit psyched out.
When I heard this, in a way I felt a sense of pride, I had finished the "Real CMU" before it got watered down. I also felt a bit of loss, like I had spent the time and money to get their name on my resume and they were going to water its value down. As I've matured, started a family, etc.. I've grown to believe that CMU had (maybe still has) a fairly unhealthy emotional culture about it, I learned a lot, and I really don't have a lot of bad things to say about the place but I meet a bunch of damaged people there and some that might not be damaged so much as just not healthy emotionally. I'm not a mental health expert though, it's just my feeling, there are also some great people I meet there too. I'm in far more contact with people not of SCS though. I've worked at a number of startups, including a couple that were very much on the brink of death and I don't know that I've ever encountered any professional stress close to some of the times at CMU.