In my opinion - and I do not expect everyone to agree with it:-

Not to differentiate is actually the worst thing to do.

This is something that ought to be obvious to anyone that thinks about this for more than a couple of nanoseconds - pre the lobotomy that is usually applied in US colleges in the name of 'Political Correctness' at least.

People with the ecomonic and political means to opt out into better schools that do differentiate will - leaving the underprivileged to fall deeper into the mire.

Iron sharpens iron...

Become what you are