I agree with you here in that this program seems to reward abject bricktiness over mediocrity. However, the fact is that many jobs now require some form of training and intelligence. Clearly, some people don't fall into this job structure for whatever reason. However, if these people aren't incorporated into the work force (and many likely won't even if there were ample job opportunities), what do they resort to? Prison might be a better environment than wherever they might currently be stationed, trying to scrounge up enough food and clothing to get by. And of course, these types of people have boatloads of kids, further fudging over the society they live in. It's not like there's a half-way prison/Gulag that you could send them to, where they're forced into paid manual labor. I honestly don't know what a good solution is in this instance, aside from the old letting natural selection run its course.