The failings of a rote-memorization system are well-known: lack of social and practical skills, absence of self-discipline and imagination, loss of curiosity and passion for learning.
According to research on education, using tests to structure schooling is a mistake.
Students lose their innate inquisitiveness and imagination, and become insecure and amoral in the pursuit of high scores.
Tests are less relevant to concrete life and work skills than the ability to write a coherent essay, which requires being able to identify a problem, break it down to its constituent parts, analyze it from multiple angles and assemble a solution in a succinct manner to communicate across cultures and time.