With grade inflation, wouldn’t a majority of a kids end up in ‘gifted’ classes by your criterion?
(That’s not saying there’s not unfair favoritism at your and others’ schools.)
About 15% of the grade level received an “A” in the two courses I speak of, but only 17 “select few” were chosen to go on, not even the ones with the highest average!
And, yes, I do believe grade inflation exists and coexists with favoritism!