School and Grades

Watching the news yesterday I see that now groups are complaining about kids getting F’s (failing) grades in school.
My understanding is that they are saying that there should not be a grade F for fail, but instead it should be an H (held). They are saying a student should not be failed in a class because it is telling them that they are a failure. Well, is that not what they have done and not what they are in that course ? What is going on? If you are not making an effort or not going to class then that is exactly what you are and should do, is fail. If you are going to pass a student no matter whether he makes an effort or not or shows up for class or not then what is the purpose of even having a school to begin with. Also, what is it that you think you are telling a student that actually puts out the effort or the extra effort to do well in school. If there is no way that you can fail a class then why should they put any effort into studying. It seems to me that if a teacher is not allowed to fail a student then they are telling kids that they do not need to make an effort and also telling teachers that they have no need to make an effort either. Come on people, call it what it is, F is for failure, because you are not or will not or do not care about anything, anybody or yourself or what you are doing so you have failed or are a failure. If you really care or even interested in trying and making an effort, then there is always help out there, but, you have to be willing to try.
So, again I ask you America; What are you thinking ?