From what I can tell, people think loosening the standards for diversity is wrong. But on the other hand, a lot of people were disadvantaged and grew up with a system designed specifically to hold them down so that they couldn't meet the standards. I have no idea how to solve the issue. It is a tough problem and the current political climate doesn't help.
I am a fan of setting a minimum baseline standard, and then taking the best from every area. The Service Academies are, by Congressional mandate, required to be geographically diverse by virtue of the Congressional Nomination requirement. Let's shoot to get the valedictorian in each Congressional district. Will some be stronger than others academically, athletically, or in terms of maturity, or other tangibles and intangibles? Absolutely. But let's take the people who did the best with what they had.
A little more background on this topic: I worked in USNA admissions prior to flight school. It was cool to see the board take into account a kid from South Carolina who, on paper, excelled in everything EXCEPT his English SAT, which I think he got a 460 in (a relatively low score). His English teacher wrote USNA and said he was the best student in English in his entire graduating class and it wasn't his fault. Their English department was woefully underfunded, classrooms overloaded, books were tattered and from the 1950s. The admissions board considered "ok, we can teach him English; clearly, he's willing to learn and hungry for success as he's in the top 5 students in his graduating class." There were no indicators of his race otherwise on his application; his name was a fairly generic one. The board looked up the town on Wikipedia, saw the median income, and thought "well, that teacher is probably telling the truth about her English department. Thumbs up all around." Compare that situation to the kid graduating a top Prep School who got 600s in each SAT and was middle of his class at the Prep School. On paper which applicant is better? You can make an argument for either, but I don't think it's unfair to let the kid in with the worse scores who did better relative to his peers, and did the best he could with the resources he had. This is the same reason many colleges count a high school job helping to support a family as heavily as any other "extracurricular." At the time, (I certainly can't speak for today's Admission boards to USNA), I felt like they cared more about class rank as it was an indicator of how did you do with what you had relative to peers who had (presumably) similar resources. Knowing my SAT scores, I am certain my class rank played a significant part into all the colleges to which I gained admission.
More about me: I had do to a Prep Year program at a civilian prep school prior to my admission to USNA. I saw the scenario described from both lenses; here I was at a $38,000+ per year boarding HIGH SCHOOL that I would never have had the resources to attend on my own for the 1 year I was there, let alone for all four years, and I saw many of my classmates have that attitude of "Oh yeah, I'll get into Ivy/Near Ivy League School X/Y/Z because I went to [Insert Elite Boarding School Name Here] despite being 50th out of 110 in the graduation class." Turns out, most of those dudes got into to same State Schools (not that there is anything wrong with that) that my middle-of-the-pack 250th/500 in the graduating class of my public high school got into. What was the difference? The prep school kids were miffed, pissed, in disbelief, and felt like their parents wasted money. If those kids went to my public high school, I'm certain that they would have done better than middle of the class, but I'm not certain they would have done that much better, though they were absolutely certain of it, as if every single person who finished in front of them must be the next Albert Einstein or something.