I would just caution that the colleges being named here by posters (MIT, Brown, Swarthmore, etc.) are from a very small section of colleges that have students who almost entirely would have done well in high school GPA and on standardized exams. Most often (not always) they have a family background that focuses on school, and they understand that they have to learn the material eventually e.g. to stay at MIT.
Of course, a few may have come from such poor educational backgrounds that they really are in shock when they have to perform well at Brown etc., but not many. In other words, a grading philosophy that could work well at elite schools with motivated and driven students (who both applied to and got into said schools) might not have the same results across the wide spectrum of higher education.
My spouse currently teaches at a very small commuter school with students so poorly prepared for college that one asked, mid-way through the semester in a writing course, what a paragraph is. Now, on one hand, you might think these students would be the very ones who would benefit from the “ungrading” approach, but in my experience with low competition colleges (at which husband has taught in three states scattered across the country), many of the students there have never actually been graded in K-12 with a decent standard grading. I don’t mean a demanding standard, just something that didn’t give an A or B merely for turning in anything at all and not causing problems in the classroom. They are used to getting an A or B for doing anything, which will not work in the world of work. Because of previous experience, these students often seem less prone to drive themselves regardless of grades than a student at a UC as highlighted in the article. Even with grades, it is difficult to get many students to turn in work on time (or late!) or study at all for any tests or quizzes.
Now granted, these are students whom K-12 public education has completely failed and who are in difficult circumstances, but graduating from this type of college Pass/Fail would not do the students any favors, unlike graduating from Brown Pass/Fail. Being at such a college is already a strike of sorts; everyone getting a Pass would be worse for the better students there.
I don’t have an answer to this issue in general, but seeing the types of colleges named by posters, I just wanted to throw into the thread that most colleges are not elite or even very competitive for admissions, and the student bodies there might differ in how they respond to ungrading. More importantly as far as I am concerned, the gifted students who do end up at such “uncompetitive” schools for various reasons- money, family, work- are better served by having grades to show that they are, in fact, performing well since the school name is not going to get them any jobs by itself. It’s important not to evaluate a policy based on Brown and MIT.