It rewards people who can cram well and have good memories, but punishes those who do good work and who aren't good at last minute cram sessions. I've always thought it borderline cruel, especially when the workplace doesn't reflect this. I rarely jerk around M-F and stay up until 4am on Sunday to perform some big task. Its all about rationally addressing problems, breaking them into chunks, and performing those chunks. At universities, its all about irrationally fucking around and doing a last minute cram to get by. I can see why so many talented young men and women would consider dropping out to enter the startup workforce, especially in a down economy that isn't hiring and the sudden realization of having a huge loan debt for the next 10-20 years.
I remember more than a few classes that were structured as 90% final exam and 10% everything else (or more typically 80/20). I never felt this was fair to the student and only encouraged lousy study habits, procrastination, and cheating. Its almost as if the American college experience is one big exercise in not doing things the proper way.
I feel this made me a worse procrastinator than I already was and that it took me several years to shed these bad habits.