Where I live, we have a problem, about half the schools teach the kids how wonderful they are, and encourage the hell outa them, they don't write marks down, and nobody is ever really corrected, just encouraged, the rest are mixed between correcting and encouraging, and just correcting... it's been that way for long enough that we're looking at a couple "school generations" and it's readily apparent that the people generally from the schools that are too coddling, end up either useless or pricks, and generally not equipped for the HARSHNESS OF REALITY, everyone else seems to be doing just fine, hell most of the people I know including myself that have lived a relatively less merciful forgiving and overall cushy life, have become the chillest easiest going least self important(without becoming totally insecure), we know we're just people and do what we can to just be people, with our own ambitions, and no major psychological problems, cuz we've dealt with that crap for a good deal of our younger years, and GROWN and become responsible and capable people. Most of the other people I know who were raised in an altogether too soft environment(as far as I can see) have all ended up being either incredibly needy, or fucked up in some way... they have a hard tome coping with basic stuff, and any time their life sucks and they aren't having fun all the time they go running to a psychiatrist for meds... I know some people have problems, but honestly if we really have such a high number of people who can't cope and need medication just to not commit suicide, or attempt daily, we either need to change the society in which we live, or just let em all do it and get rid of the weak genetic strain that is threatening to overtake our race and spell out our extinction...
So, I don't think the elimination of red ink is really the issue here, it's that it's happening as just ONE of the many changes put in place to continue the breakdown of our social standards into a pablum-like mush, where the weak and needy are coddled at the expense of those who can bloody well survive.
just my $0.02
/end rant