Yes. I do wish I was not graded.

There are so many amazing students at school / university. They are not top graders, but they can be talented athletes, actors, musicians, entrepreneurs, etc.

They all do different things, approach problems differently. They can't be graded by a linear scale.

However, schools need metrics to evaluate students and for admissions, even though non academic activities could play a role to this, ultimately they are assigning grades and marks to students.