For some people, focusing on good grades can be a fun and fulfilling student experience as well. I believe this highly competitive environment made me a lot more resilient to stress and taught me to manage my time effectively. If not at uni (when most people have few other obligations), when else should you learn this?
To each his own, but I sincerely hope people use their college/university years to experiment and try out new things - and don't solely focus on grades, at the expense of everything else.
For most, it's the first time they're on their own - and last stop before professional life starts. When one door opens, another door closes.