I don't think the parents are evil. But nepotism isn't a desirable attribute for society. It doesn't award innovation and fosters dissatisfaction. It's self reinforcing, which is always a dangerous attribute.

As with other antisocial trends, we just need to implement strategies to counter it. This is already something we do -- eg. scholarships --, so while it might sound harsh, it isn't particularly controversial. We probably need to intensify our efforts.