And it penalizes in many ways. Focusing too much on grades can be detrimental in graduate studies, despite graduate admissions focusing on GPA and test scores. I remember seeing 4.0 undergrads really struggle with research in grad school, sometimes to the point of dropping out. Certainly not always the case, but for the ones that did I think it speaks to your point about different skillsets.
Maybe worse was seeing the undergrads who passed on research opportunities out of fear it would distract them from keeping a high GPA.
Curiously, while I had a 2.7 in undergrad. I thrived in the workplace. The initial GPA restricted my options for the first 3-5 years, but I eventually became a Principal Engineer at a FAANG. In hindsight, I wish I had balanced my objectives more - but I also lacked the discipline to do things I didn't want to back then.
Maybe worse was seeing the undergrads who passed on research opportunities out of fear it would distract them from keeping a high GPA.