I didn't have a phone at all until I was in high school! Looking back on all the times that I was tragically killed or maimed as a result, it's a miracle I'm able to write this comment today!
I'm glad to see high schools pushing back on this. My college student had classes their first two years that required a smartphone in order to participate in class. Failure to procure an Android or Apple device that could run the app they used was an automatic 20% markdown on one's final grade for non-participation.
A friend shared a photo of a wall organizer that (middle school?) kids put their phones into during class. Even though I'm now long out of school, that they sort of have to adapt or else it will really affect the educational outcomes.
I don't think people failing out of college really has the same stigma for the institution. I wonder if in fact it would even help with the prestige somehow.