It was pretty brutal but also highly effective at getting me to really study the material to stay above the curve and pass.
Also, from the context given here it's not as black and white as pass vs non-pass or "lowering standards" - it's about a rolling cut off on the amount of students they can take.
For some the truth may be that their lack of success may be external issues that can't be resolved by an additional investment of staff resources or just unsuitability for the program that can't be resolved other than by picking a more suitable major.
There is of course in the context of US education which wastes massive amounts of money so the actual answer is to stop wasting money on sports and invest that money in students but in all cases resources remain finite and some failure rate is inevitable.
In the case of struggling students. I think it's hard to dismiss a person because they struggle in a single course. I failed calculus 2 and now I'm about to finish a PhD doing statistics and machine learning. Should I have been "let go" so to speak upon that failure?
Failures matter when they are cumulative not singular. This is why early warning systems in education fail so much. They rarely have enough information to provide a warning that is actually early.
How many years of time do you think it is humane to provide to a student before suggesting somehow that they might consider an alternate use of their time?