It's actually a terrible idea. You're giving the people who "fail fast" no real incentives to fix themselves up and try again, and the people who "succeed" no incentives to do even better in the future. Even aside from how cruel it obviously looks, it's really a recipe for pervasive incompetence and a failed society.
Again the Brits had their biggest empire when led by this caste of people, which is why their boarding schools get so much overseas business today. To paint that as incompetence or a failed society is wishful thinking - they were the peak of what they could be.
It is like failing fast for people. It looks cruel but in the long run is more honest.
That is not to say the networks from exclusive day schools do not help, they do.