There are far too many points here for me to address, so I'll try and keep it brief. As an A-level student I think it's unfair to dismiss students who perform well in them. I'm currently studying biology, chemistry, maths, spanish, english language and general studies (sadly) - that 6 A-levels and I'm on target for A grades in all of them. No that's not because the A-levels are easier, it's because I'm willing to work hard. From what I'm told by my teachers, in the days of old when 3 subjects were studied, they were studied in in slightly greater depth. However, as students take more subjects now, the workload is larger now. The rise in A grade passes may be contributed to the increase in popularity of the softer subjects, but that doesn't warrant sweeping generalisations suggesting that A-levels are easier.
Now a lot has been said about the poor spelling and grammar of graduates, but there's a good explanation for that. It's not a question of intelligence, as we all know that grammar and orthography are hardly good measures of a person's intellectual ability - the reason is that grammar is not taught in schools. Far too much time is spent in our schools teaching children useless skills like how to dissect abstruse poetry, decipher obsolete plays and design leaflets, giving us legions of students who could tell you all you want to know and about Seamus Heaney's ramblings, but can't write a formal letter or their own CV.
As for students who perform poorly in their A-levels, it's worth remembering that the A-levels may well be the last externally examined studies that they will undertake and they might well be more difficult than the degree courses that the students wish to study. They deserve another chance. But that's only my opinion.
We must avoid elitism and I don't advocate separating education into two tiers. However, it is worrying how university is presented as the only option for students, when it clearly isn't