I got a first but I don't see how there is grade inflation, given that there are strict, detailed criteria for each classification, and your overall classification is a result of many, many small assessments marked by many different lecturers. It is frustrating reading this kind of thing, it is the same with a-levels and GCSEs, it seems to erase achievement and make people think they don't "deserve" their grades.
I think with the use of the internet, you can't compare students graduating now to students graduating say 20 years ago. It's obvious we are going to be doing better in academics as we have access to more resources to help us in our studies. I have used forums for advice, Wikipedia, Youtube, Google Scholar, PubMed and more to help with my studies, as have all other students.
I think the UMS method works well for a-levels and GCSE so something similar could work. I do think modules need to be standardised somehow, as I have studied modules which have been really difficult and had something like 4% getting a first in, and others that are easier.