Let's face it-comparatively the VCE is NOT hard- and there's really not much other way of selecting people into a course.
For subjects like Medicine- the UMAT and an interview are used- and that weeds out numerous students who are not fit for the course. For things like Industrial design and fashion- similar methods are implemented. The fact is- that students NEED to be graded and examined- to determine whether they are fit to complete a course- in terms of achieving the necessary grades for success.
As opposed to other systems- the implementation of SACS makes the system less dependant upon one test. Most subjects in the VCE will be relatively useless for most people- as someone going into commerce is highly unlikely to use Chem. However, it assesses a students aptitude to succeed- relative to the rest of the state. There are some conceptaul problems to the system- however, for people to argue that we should abholish testing is ludicrous- as students are going to get a huge shock- when they enter the real world-as firms hire and fire individuals based on the targets and goals that you achieve, not how well you can play footy.