My daughter's high school still ranks students (she is no. 1 of junior class of about 400). But they don't call the no. 1 valedictorian any more. In addition, the valedictorian does not speak at graduation. Instead, anyone can apply to speak. Apparently, a student suicide which may or may not have any thing to do with ranking freaked the school district out.
DD complained once or twice because she worked really hard to get to this point. But it does not seem to bother her that much. I think she is so ready to leave HS behind.
To us, whether she is called valedictorian makes absolute no difference. But some scholarships are only given to valedictorian. For example, a student can get a full ride from Dominican U of California if he has an official title of "valedictorian". In that case, the school district is doing a dis-service to its students.