The college admissions process will never be meritocratic. There's just too many variables, too many incentives for universities to do things for the wrong reason, and too much disagreement about what even constitutes "merit" or "fairness" for anything approaching either term to exist.
What's worse is that academia will respond to this bad publicity the only way it is capable of responding to anything: with more administration. The second I saw this news story I could picture the Associate Dean of Application Decision Review being hired at five times a faculty salary, the Merit Consultants whipping together a website and business cards, and the creaking sound of yet another layer of institutional bullshit being dropped atop the basic academic mission of a university (which seems to keep receding further into the background). Faculty committees to review applications. Faculty committees to review the committee reviewing the applications. More "metrics." More paperwork. More compliance officers. All of it.
That's what will happen, because trying to quantify and enforce a quantitative approach to "fair" enrollment decisions is like trying to hold a puddle of mercury. You just can't do it. Every student's family situation is different. Some of these kids went to high schools that are better than a lot of colleges; some went to high schools where they turn the lights off two days per week because they're so broke. Standardized testing is the most consistent measure available but it's easy to boost performance by throwing money at it – tutors, prep classes, practice tests, and the like. Then add in all the various goals universities are trying to accomplish – well-rounded students who participate in the community, in sports, in non-classroom intellectual activity, and most of all a diverse student body that isn't just a bunch of white kids from the suburbs – and it's just futile to adjudge "merit" like it's some objective thing.
A better solution might be to stop telling students constantly that academia, or life in general for that matter, is a meritocracy. Yes kids, having balls-rich parents or being exceptionally well connected are big advantages. People who have those advantages get things us normals will not get. The whole idea of anything in this fundamentally unequal society is a meritocracy is so silly that students should never be taught such a thing in the first place. Life isn't fair. College admissions are not, college is not, the job market after college is not, your future workplace will not be, the economy is not, and on and on.
I'm not saying it isn't worth it to strive toward fairness and equality, but given the systems in place in this country we are so ludicrously far from either that we're flat-out lying to kids by telling them anything is either fair or equal. There is nothing wrong with telling kids, yes, some kids get into Harvard because their parents went there. Or because they donated $2.5 million. Some day you will work for a boss who has her job because the company is owned by her dad. Some day you will apply for a job and not get it because you're not buddies with the hiring manager.
Basically, why not treat this the same as the criminal justice system and just do away with the pretense that any aspect of it is blind, fair, or meritocratic? Even in the unlikely event that the problems with inequality in these processes is fixed, it certainly won't be happening anytime soon. Aren't we getting tired of pretending?