This is nothing to do with this generation wanting everyone wanting to be a winner. This is in fact not about winners and losers. When you take you take your degree you are not competing with everyone else on the course, so comparing it to a 100m race is not relevant.
The border for a first is in the end where the university says it is. The rules and regulations about how each university decides on classification are clearly set out so if the university awards a first that is because they feel that is what the student deserves. If you really don't like it make sure you go to a university where the don't do this .
In the past some universities , use to do vivas for people on the border- my mum had to do one for her undergraduate degree back in the 1980s- Looking at a students overall academic record rather than just looking at numbers can be a good one to determine if someone is worth the next grade up.