I believe college admissions should be based on the students' grades and achievements, not the color of their skin (affirmitive action), where they're from (preference for in-state applicants), or whether or not mommy/daddy give money to the alumni association (legacy). It's sad that people in the right situation can just skate into top universities while those from nowhere who work their asses off get screwed.
For example, I absolutely hate the way that the University of Michigan handles admissions. You are awarded points based on all three of the above criteria, along with grades, awards/honors, etc, and if your overall score is high enough, you're in. Sometimes just one point can mean the difference between "GO BLUE!" and "Go *insert name of local community college*!"
For example: Two students with completely identical grades, ACT/SAT scores, and extracurricular activities both apply to U of M. Applicant #1 is of an "underrepresented minority," lives in Lansing, and had a parent who graduated from U of M. Applicant #2 is caucasion, lives in Minneapolis, and neither parent attended U of M. Although their acheivements are identical and they are both equally qualified to attend the university, the point system in place by the university will award more points to Applicant #1, quite possibly admitting them over the equally qualified Applicant #2. Preferential treatment, racism, whatever... it ain't right.
I just think that value should be placed on hard work and accomplishments, not on skin color, state of residency, or legacy. Do people not value hard work any more?