To whose benefit are these epiphanies of meeting or failing to meet the “needed” levels of those skills? The test taker? That seemed to be the emphasis when I dropped out. The prospective employers? In retrospect, that seems more probable.
The sole beneficiaries are the people in HR and admissions departments, who are absolutely swamped by applicants.
If you have a thousand applications for a single position (or for two dozen positions), then you have a huge amount of work to do, to try to determine which is the applicant (or applicants) most likely to succeed. It's essentially an impossible task; We all know of people who get a job (or a place on a college course) by lying on their resume, or by being highly skilled at writing a response to selection criteria, but who are utterly hopeless once in place, and who were almost certainly less suitable than one (or even many) of the unsuccessful applicants.
It's an impossible task; You cannot determine which of a thousand people are likely to be the best. So you need a shortcut.
You could just chuck ninety nine out of every hundred resumes in the bin, based on a purely random selection, and then interview the ten survivors. But your boss would be all "what was the reasoning behind this choice?", and you'd have no good answer for that.
But you can achieve much the same result by setting an entirely arbitrary minimum SAT score for applicants to be considered, and only interview the ten applicants who make that cut - and your boss will be satisfied that your selection process has some solid basis. Even though it really doesn't. And even though the chances are very high that you didn't even interview the best of the applicants.
If you discriminated against perfectly good applicants on the basis of skin colour, or gender, or whether they lived in a particular suburb, or any of dozens of other factors that are highly unlikely to be relevant, then you'd risk being sued, or at the very least, being accused of bias.
But discrimination between two applicants on the basis that one scored 1542, while the other scored 1543, on a standardised test they took twenty years ago, is not going to get you into trouble; And it renders your job vastly easier. Nobody else benefits.