But that is how it works at other prestigious universities, basically every professor thinks that students doesn't learn stuff well enough and would want to test even more thorough understanding than they already do. It isn't about grading on a curve, it is about giving a good test for the students.

It isn't like students at any institution understands the material as well as the professor even when they get the highest grade in that class, but that is the goal. The better the students the closer you can get, Harvard just refuses to test that properly, or if they do test it they don't record that grade.