It should be for people who will enjoy their time there and gain something out of it. If someone doesn’t respond well to schooling and lectures and coursework and exams, they should be given the opportunity to get off the rollercoaster before being subjected to three more years of the same. Putting aside resource constraints on college place availability, measuring academic compatibility is - at least in theory - something that ought to be able to work out to the benefit of the student.
I’m not going to call these people stupid. But even in a world where everyone can go to college if they want to, it would be failing a lot of individuals if we don’t try and give folks at least some information on whether it’ll be a good idea for them or not, and what other options to look for otherwise, and their eventual chances of success if they were to pursue some field or career. Even in the absence of selective admission, there ought to be assessment. I don’t think you are doing kids a favour by putting them in a state of uncertainty about their own strengths and weaknesses.
And yes, I think you can do this in a way that counters, instead of reinforces, existing racial (etc) biases. It’s not trivial, but it’s doable.