It depends on the point of view...
From the point of view of the university and the other university students, yeah, it's a good idea to accept everybody based on individual merit. As long as there is no discrimination in the system, this works best.
From the wider point of view of society, well...
The question that comes into my mind is this: Why doesn't the demographic of the university population parallel the rest of the population anyway? Is it worth attempting to re-address this balance? Will giving certain groups an artificial advantage at university prove to be an effective tool in the arsenal?
Remember that some sectors of society (e.g. black people) haven't had the same advantages as others, and have been oppressed, etc. So even though some individuals might lose out, it might invest those sectors of society with:
Also: Can society bear the load of accommodating those sectors? A strong society will be able to integrate them, but a weaker society might be better playing to its' strengths first, rather than trying to please everyone.
Then there's the whole thing about how people see different races, and racial equality. There is still a lot of anger because of the oppression of blacks. But I bet Mexicans are just as much of an issue in Texas, and I don't know anything about that really. Have you guys been oppressing Mexicans?!?