Statistically speaking, half of the people you meet are below average.
But seriously, I was obsessed with grades as a kid. My dad would lose his mind with bad grades. I knew I was in for a beating if the teacher said "Ben could be doing better."
When I went to university, I was surprised to find that the material was more interesting than the grades I got. I found peace in knowing the subject matter. When I hear you guys talk about not being able to get into grad school if you have one B on your transcripts, I cringe. If that was the case, I don't think I would have even applied.
Teachers and Professors quickly get a reputation on their grading.
"I got an 87% in that class, but Smith was my prof, so it doesn't really matter" or
"You got a 60% in Jones' math class? Holy shit, Isaac Newton couldn't swing a grade like that..."
In high school, the teachers artifically inflated the grades, because they knew that every other teacher was doing the same thing so that their students could get into university. I don't remember many C grades being given out at all (btw, we use the percentile system where I am, and the letter grade thing is weird to me). It was funny to see the kids show up at university with a 90% average (yes, you read that correctly, it was commonplace) out of high school and get back their first assignment in english 110. They would see a 60% on the paper (which is a good grade at that level and experience) and jump off a fucking bridge. "I've never got a 60% in my LIFE!!!" they scream to their friends.
Enter a 4th year student, who quickly looks at the paper, complete with spelling and grammatical errors: "I would have failed you. You got off easy."
Students learn that a 60 in university is like an 85 in high school.
When applying for a job, does the employer look at transcripts where you guys are? I think that the companies only care that you have the letters by your name.
You know what they call a person who graduated last in medical school? Doctor.