The main distinction to be made between learning and grades is understanding. An advocate for the "learning technique" has several key arguments. First of all, there is no way to grade a student given our current guidelines, because all students are different. Also, a student can be brilliant, but not care about his grades, which results in a altered future because of how much emphasis is placed on scores. Who knows how many great minds have been denied the ability to thrive because of this system? Finally, grades can cause students to lose motivation, rather than creating it. Some kids, upon receiving an unwanted grade, decide that their best effort isn't good enough for an A, and stop trying. It can be argued that all students should be able to get an A if they try their hardest, but when in practice this is not always the case.
However, one who supports grading also has logic on his side. Without grading, what motivation do students have to even attempt their schoolwork? Although there are students in it for the learning experience, there are also those who hate absolutely every minute of it and would gladly not do any work at all. Also, colleges need a standard in order to sift through the millions of potential applicants. This system is more strict and organized, as opposed to the more relaxed one mentioned previously.
I see these two systems having the potential to form a very logical and efficient structure of education. Aspects from both can be salvaged; it isn't a complete remodeling. The prospect of individualistic grading is the obvious fusion of the two. Since everyone is unique, why do schools hold everyone to the same standards? Though it may be more costly and time consuming, in the long run I feel it is best to find out where each individual stands academically and base their grades on their own criteria. Even within the various class levels (honors, regular, team) there are still several tiers of students with different strengths and weaknesses.