Grades are very different now too - they have a good deal more practical
use to a learning guitarist than the old grades did for non-classical
guitar. They were too similar to the classical model. I'd happily teach
someone to the syllabus WITHOUT them doing the exams! It's a good
syllabus (I'm talking here about the electric version of these new
acoustic grades).

Although, I am 100% with you. I don't think exams are what learning
music should be about at all. THere is simply no need for them with
talented and creative pupils. They do serve a purpose though, and that
purpose is NOT "grading" the pupil. The purpose is maintaining
motivation to pratice because of a somewhat imposing goal.