They should just make this explicit, like the UT system does. The top X% of students are admitted automatically from each school.
It's all publicly funded universities in Texas, not just the UT system.
In other words: you've just pissed off a lot of Aggies grouping them in with, ahem, tu.
UCs already guarantee this to the top % of students in every school.
I think U of Florida used to give full rides to the top n of each high school's graduating class. I think n was something around 5.
This seems terrible incentives. You are now in a purely adversarial relationship with your peers and hurting them helps you
California has that. The top 9% from each high school and the top 9% statewide are guaranteed UC admission. This does not guarantee admission to any specific campus, so if you are only interested in say Berkeley or UCLA you might get admitted but UC will find you a place at some campus.