There might be the rare generational talent that, starting in their discipline at age 18 with no prior exposure and poor nutrition, education, health, exercise, etc, could outcompete your average loser brought up with every advantage and private lessons from age 6, but in general I wouldn't expect talent to out in those circumstances.
And school's not supposed to be about filtering for rare generational talents, at least not first and foremost. It's supposed to be about getting everyone as far as they can go, and if we separate people into "smart" and "dumb" buckets before they're old enough to ever have actually gotten a chance, some people will be stuck in the "dumb" buckets their whole life that could've been a solid contributer to society if society ever cared enough to invest in them.
Or, another way of looking at it: Everything else is made to put a thumb on the scale. Everything else is designed from the ground up to advantage the advantaged. Public school is supposed to be one of the few institutions that mitigates that, that tries to put a thumb on the other side at least a little, to help level things out. And the people with the advantages hate that, and try their hardest to thwart it, whether through private schools, through pushing public schools to make different "tracks", or whatever.
The heritability of IQ is one of the best-replicated results in psychology/social sciences, with most of the environmental variability believed to be negative contributions from things like bad nutrition, stressful home lives in early life, and lead exposure/other environmental toxins.
You know why. It leads to something so heretical even alluding to it could cause irreparable harm to your reputation.
For one, people used to be a lot better, do unless you think people are actively dumber, you argument doesn't hold.
School capabilities also correlates massively with things like access to resources and wealth of parents, and inversely with mental health.
We also have very strong incentives as a society, as an economy and as a democracy to have as many educated people as possible, to work on setting the best conditions possible for people to learn
The human body is quite complex as well.
Graduating a for profit private college that is aiming to maximize profit, by churning out specific degrees does not mean you are educated. Having a college degree is not synonymous anymore with well educated.
The measure (college degree) became a target, and thus it stopped functioning as intended.