Schools really do have to de-emphasize academic achievement based on test and exam scores while giving non-academic activities a big boost.
Co-curricula activities (CCAs) hone talent in sport and aesthetics; and provide experience in service-oriented project tasks. Community involvement (if not done in a too-contrived manner) lets kids experience and participate in the real world away from their sheltered, blinkered lives on campus or at home.
If we're worried about the kids' employability think about this: academic certification only ascertains which league a person is eligible to play in, but it doesn't guarantee that he or she will be picked to play on a team. A company in the real world wants an employee who can cope in the real world. Those with talents in multiple fields have the most opportunities as they are those most sought after.
Kids gunning only for academic achievement, your certificate can only prove one and only one ability you have to offer: that you can take a whole year to reproduce a chunk of text from memory. Wow. I'm so impressed. Let me Google up who else can do the same thing in less time...