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HS grades inflated or just smarter kids?

I'm a little confused and obviously out of the loop. Back in the 80's & early 90's, a GPA of 3.5 +/- was quite respectable and a 30+ ACT (or SAT comp) was great. Generally speaking, it would easily put most everyone I knew (friends & cousins around the country) in the top 10% of their classes and very competitive (shoo in) for most colleges. Looking at quite a few college specific threads, there are so many students now that have 3.5+ GPA and 30+ ACT scores getting deferred, rejected, wait listed from colleges that aren't even considered top tier schools. It feels like 3.5+ GPAs are everywhere & a dime a dozen. I asked my HS senior how a 3.5 GPA was perceived at his school (average rural public school) & if it was still considered a very respectable GPA. He looked at me like I was sprouting broccoli from my ears. Apparently applied to his class, it was just an "OK" GPA & he thought it was laughable that it was ever considered a really good GPA.

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