You are way over emphasizing bad losses, and I am wondering if the NET is as well. In real life, I have always been told (and have had it anecdotally confirmed), that in a 3.0 GPA scenario, if you have one candidate that got to 3.0 through all B's and one who got there through an equal number of A's and C's, the A and C candidate is the better hire because he or she has proven an ability to perform at the top level. The all B candidate may be consistent, and just as efficient, but if you're looking for someone on your team, you take the A and the C. Your emphasis on bad loss outliers ignores that reasonable real world hypothesis. And so far, it appears NET does, too. Add in the real world of 18-22 year old young men, and it makes it even worse.
I know someone posted in another thread that we can expect the committee to work these things out in the selection process. I am just not that trusting.