"If they are not number one, it could get their feelings hurt if they are self-motivating and high-achieving students" ...uh, I believe that's called LIFE you moron!
Actually, as pathetic as the idea may be, I do agree that students today can pad their GPAs a whole lot easier than in past years. That cheapens the worth of a valedictorian award.
Still, there are many other statistics that can sway the overall student standing in a particular school, including enrollment size and demographics.
But maybe we should abolish scholarships as well, since those students that could not get one "could get their feelings hurt".