I guess this makes sense in a university context and with aggregated data.
As an example of how you do not want to do grading based on an average, I once had a high school professor rescale my 85%-ish percent on a test to 65%-ish, because most people did well in that test so the professor decided he had made the test too easy and scaled grades down.
That was only one of the reasons I hated that guy’s guts.
Not a complete list, but