You misunderstand why colleges use SAT/ACT scores for college entrance. It is not used to predict IQ, or who deserves to be in college. It is used to determine the probability that you will indeed complete a course of study. The argument has been that SAT/ACT/GRE scores are directly correlated to GPA. They are indeed correlated, but only to a very small significance. This isn't the relaxation of standards, this is the removal of a statistically invalid measure (that also happens to be culturally biased).
You misunderstand why colleges use SAT/ACT scores for college entrance. It is not used to predict IQ, or who deserves to be in college. It is used to determine the probability that you will indeed complete a course of study. The argument has been that SAT/ACT/GRE scores are directly correlated to GPA. They are indeed correlated, but only to a very small significance. This isn't the relaxation of standards, this is the removal of a statistically invalid measure (that also happens to be culturally biased).