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Courses taken at a local college or university during high school are, IMO, much better predictors of ability to do college-level work. The student is offering proof of having succeeded in courses at an actual college (and tuition and books are usually free to high school students). Personally, I'd prefer this system, with AP left for places that don't have a local college.
Unless I'm misunderstanding you, are you saying that where you live college classes DON'T have tuition/book fees for high school students? Because around here, classes on a college campus are at least a few hundred dollars per credit hour, and possibly more -- whereas AP classes are free to take and $90 for the test.