Have you ever heard of high schools eliminating grades?

My wife is a high school teacher at a good public high school. In the past, the superintendent tried to eliminate honors classes because they weren't fair or something. This was extremely unpopular with parents and I believe the board eventually nixed the idea. Superintendent didn't have a job shortly thereafter.

Now, I guess her principal wants to eliminate grades altogether. I guess all classes would be pass fail. This idea seems more radical than eliminating honors classes to me. I can't imagine that parents or the board will be thrilled with this idea. Eliminating grades seems to possibly make more sense for younger grades but it seems there would be a lot more hurdles at the high school level.

Have you ever heard of a high school doing this? What do you think?