What about it in particular?
I think the elite 10 is fairly reasonable
The 10 best studens get special rights and privelege, I'm fine with that.
What's stupid about it is that they are basically on top of the chain when it comes to decisions that affect the whole school/university.
Since their position is never secure and can be challenged at any time, it's ridicilous to give them any right of co-determination or something like workers' participation....
"they want a new director" -> director changed -> 3 guys fall out of the top 10 and get replaced the next day "we want a different director" -> director will change again.
It's like letting Ronaldo/Messi decide who gets to train the team, but even worse.