Naturally, grade inflation exists, but one thing nobody mentioned is that getting an honors degree is now a goal for a lot more people. Before, the honors degree was only needed if you wanted the academic life. Now that you can get a better job with one, students study like crazy for the exam, and there are more good honors degrees.
It's like getting into a top college in the US. In my day, top grades and test scores were all you needed. Now you need fabulous grades, perfect SATs, volunteer work, quirky interests, and a heartrending personal essay. You have to work harder.