That would leave a lot more space open in schools for creative work. That includes both academic research and the humanities, which are less objective but nonetheless valuable. As has been pointed out before, during the current health crisis, people turn to the arts: TV, books, podcasts, video games, etc. These are things that are hard to learn with self-study and impossible to test for -- except for the test of whether people will want to consume them.
Even programmers eventually need at least some of this. A development team requires a lot of people trained at a purely vo-tech, objective level to be experts in the various technologies. But for a product to be successful, it also requires people who know what its users want, which is much harder to judge objectively, and harder to learn from a book.
I believe too many programmers go to university to learn what they could learn on their own, or at a much less expensive school that doesn't try give a broad education. We need a lot of those, and employers make a mistake in rejecting people who don't have that university degree. Worse, even among those with that university degree, they test them purely on their objective skills, and then later complain that they produce ugly interfaces and write terribly.
The whole point of the American University is to produce these kind of people so that shouldn’t be surprising. Otherwise you could earn a degree via self study proctored exams. Lack of objectivity during the application is a symptom not a cause.