I must sadly agree with the notion that standards are drastically declining. I'm still in high school myself (I'll be a senior this fall) and I've seen first hand how people who really aren't that bright are getting straight A's. My local newspaper just listed the students who were on the honor roll and high honor roll for the final quarter and I felt embarrassed. I was on the list (of course :), but 140 of my colleagues were as well. My class is of 260 students, and when well over half of the class receives honors, there's something wrong. It seems to me that teachers have become afraid of disappointing students or making it look like they're not teaching very well, so they've made tests easier and inflated the grades.
I also feel a little disturbed when I see classmates who are taking honors classes receive a lower class rank than someone who is taking the weakest possible combination of classes.