I have to say, my yeshiva is not like that at all.
I agree that they shouldn’t make students feel bad, but my yeshiva simply does not do that. One of the mailos is that the rosh yeshiva is very big on middos – I’m graduating next week Im yirtze hashem, and I’ve attended the graduations my school has had for the past 3 years. Everyone is awarded – for something tailor made to them. There usually isn’t even a validvictorian; just speeches, divrei torah, awards, and food – like it should be. Every student, even the ones who aren’t graduating, are given some spotlight, and are called up to receive something.