OP, look, it's called Grade Inflation. I'm speaking from what I see in the States, so, your mileage may vary elsewhere. Frankly, right now anything less than a B is considered mediocre in most universities - at least in the states. If you think about it, grades should naturally form a bell curve, and as C is central grade, it would wind up the mean, median, and mode. That just doesn't happen. If you are ever shown a graph of the grades in class and you cut out the outliers (the people who just really nail it or really blow it), you'll usually see something that tolerably approximates a bell curve.
That would mean the average student has a C if they did the grades as they once did, but that's just not the case anymore.
Today, it's as if an A starts about 1 SD above the mean, B's cover up to the mean, C's are down to 1 SD below, D's up to two below, and F's below that, with a bit of mercy thrown in. What that means is the class will have about 20% A's, 35% B's, 30% C's, 10% D's, and 0-5% F's.
If you go to grad school, suddenly the script flips, where anything below a B is going to get your academic counselor involved, and even a B is kind of a faint black mark.
Law school, class rank means a great deal (as does the name on your diploma), so students fight for grades and couldn't care about the Bar so long as they pass.
Med school, class rank means a lot less and so does your school, but your grades on the boards are overwhelmingly important. Most med students fail or nearly fail a couple of classes on the way.