In my own experience, that is dysfunctional. We do not know what capacities individuals have. I have a good friend who was told he should not expect to go to university, and he's a very successful lawyer. They tried to stream him, but his parents wouldn't allow it. I think we don't know the potential of people when they're young. They grow and mature and become learners where they weren't before.
Streaming at a young age concerns me greatly. Obviously, post-high school, that's a different metric. I think there are more opportunities, and to some extent people self-stream.