Some people, such as Bryan Caplan, believe that college is mostly about signaling.[0] The idea is that most of the value college provides for individual students is to indicate to society that the student can jump through all the hoops necessary. It's much less about what the student actually learns in college. Essentially, college is mostly about being a filter - to weed out those that can't make it. This line of thinking would also explain college acceptance tests - they are the same type of filter, but applied before college. It's there to keep the college prestigious, so that more people will try getting into it, which will allow them to only pick the best of the best.
I think there's a lot of merit to the signaling idea, because a lot of what you learn in college doesn't have much practical value for the vast majority of students. College entrance tests are just one part of this whole process.
[0] https://blog.press.princeton.edu/2018/01/23/bryan-caplan-on-...
However, IMO, the SAT adds another variable for contextualization of these inequalities in the American education system, regardless of if the SAT itself is unequal.
Structural inequality in higher education is a whole different ballgame, and is much more complex. As someone who went to a public college, and then got to see what life was like at Ye Olde Ivy colleges and schools like Stanford/Berkeley, it's pretty apparent that there were some structural decisions from the top down that facilitated that success outside of even the economic differential between schools/programs.
Very tough things worth thinking about. I don't think that people treat standardized testing as some all telling oracle, and if they do, I believe that they're mistaken. I remember that our school offered something called the PLAN? which was like the PSAT for the ACT. The career advice it gave me based on my results was that I'd be good at landscape work.
I've never defined myself by my test taking capabilities but I will admit I always felt a little affronted upon reading everything from the movements that seek to de-legitimize all standardized testing. I felt that something I specifically chose to gamify and study for was being increasingly seen as a negative signal.
Life is tough man. I hope people succeed regardless of if they even go to college or not. With that in mind, I also hope that perhaps there can be a cultural shift that facilitates scoring better on aptitude testing because perhaps that may be a signal about our society, even if that is not a perfect signal.
I get that we should be raising standards across the board whenever possible. Education is extremely valuable and I'd like more people to be more educated. But there is always going to be a continuum of prestige, educational value, intelligence of students, etc. among various colleges.
If one person goes up, another goes down unless they are exactly equal. That level of equality is something I think impossible to achieve and even if we did, humans would find some other way to rank people.
But compared to the past, we can make it better. There is no reason why the 50th percentile today cannot be equal to the 60th percentile of yesteryear.
Accordingly, I think the SAT is a bit of a farce. Like BMI, it's essentially worthless without context that, assessed prudently, could advise stakeholders on its own, without the test score. Likewise, it obfuscates the true nature of the strengths and weaknesses of the tested. With a 9xth percentile score, are you like me, possessing a high natural aptitude but dealing with the fallout of a mental health issues, a dysfunctional home life, and the fundamental difficulties of being black in American society? Are you a intellectually-middling child of wealthy parents who can afford to shove test prep down your throat until you "get it," and then provide for your professional needs post-college? Or are you a hard-worker who studied diligently, only to exit undergrad to find that your options are severely limited by your debt load?
This is all kind of beside the point, however. We get stuck in this quagmire of discussing how best to facilitate the sorting and tracking of our youth into will succeed/won't succeed boxes, when we should be working to assure success across the board. Why are some American colleges (entrance into which is the aim of taking the SAT in the first place) excellent, and others not? Why the acceptance of such disparities in educational quality?