What will be (and should be) the future of traditional law school grading?

At his law school blog, Brian Leiter has this notable post, titled "Will Other Schools Follow the Yale/Harvard/Stanford Lead of Effectively Eliminating Grades?".  Here is how it starts:

There are rumors aplenty that Columbia and NYU may move to something like the Yale system of essentially two grades -- Honors/Pass -- now that Harvard and Stanford are going that route (though perhaps these two will actually utilize Low Pass and Fail, unlike Yale).  NYU, given its size, can probably least afford to eliminate sorting mechanisms, especially since it appears Columbia grads are still slightly preferred by the very top NYC firms.  For those who have asked, I think there is essentially no chance Chicago will go this route, or anything like this route.

Among interesting aspects of this post is the notion that the virtues and vices of a two-grade system may depend significantly on the size of a law school (even though Harvard and Stanford represent opposite extremes as to law school size).  Of course, it seems obvious that the virtues and vices of a two-grade system may also depend significantly on the national reputation of a law school, though I could readily imagine good (and bad) arguments for schools not consistently ranked in the Top 10 considering a move to an Honors/Pass grading system.

Some related LSI posts:

• Does (law school) size matter?
• Is there an ideal grading system for law schools?