I, for one, think this is nonsense.
The same privileged students who they claim do better on these tests are the ones who have the transportation and the time to be able to do extracurriculars and community service. I speak from experience. The SAT was how I got into college. I had a very rough ninth grade, and it took me about halfway through tenth grade to get my academic record together. Yet I could always ace a test, and I think I ended up with the highest score in my class by a fairly hefty margin. I never took a prep course and my family was by no means wealthy; most extracurriculars, for a number of reasons, were out of the question.
Objective standards, such as standardized testing, are important. The results can't be fudged.