Our high school did away with this not too long ago, and I have mixed feelings on it:
First and foremost, the competition inspired by the race for val/sal is often NOT a healthy competition. Instead of inspiring students to take difficult classes and do their best, it often encourages students to "play the numbers game". Here's an example: You're a top-notch senior, and you'd really like to take a couple difficult academic classes . . . and you've always wanted to take an art class just for fun. So you choose those AP classes, but then you consider that the art class -- just a regular class, no extra GPA points -- even if you earn a grade of 100, will bring down your GPA. So instead you take another honors class or you take a free period. This happens ALL THE TIME, but it isn't in the student's best interest. Taking that art class, theater class, yearbook, journalism, weight lifting, whatever special interest will make that student a better-rounded person -- we should encourage that rather than discouraging it. On the other hand, in the real world, someone will be #1 and someone else will be disappointed. Some people will say we should model this in high school, while others will say that high school isn't yet the real world and that shouldn't matter. In my mind, the biggest deal here is that the difference between #1 and #10 is about one-hundredth of a point. Is that a significant difference?
And in my long experience teaching, the people who are literally #1 and #1 in GPA are usually NOT the best students (no offense to the people who've said they were sals -- this is a generalization). Often the top-top kids are highly skilled cheaters. This was true in my own graduating class; the girl who was #1 stayed after school for yearbook purposes, and the yearbook teacher foolishly allowed her to go into the teacher workroom, where she stole tests from the copier (it was the old-fashioned kind that left a "negative" in the machine -- some of the younger readers won't have any idea what I'm talking about). In my daughter's upcoming senior class, the kid who is genuinely smartest, most well-rounded, most likely to succeed, and most academic is ranked around #10 -- because he doesn't play the numbers game and because he is unflinchingly honest.
I was in on a small meeting -- a graduation planning meeting -- when the principal told us that we would no longer have val/sal. All of us were shocked and expressed our discontent. Although it was very unlike him, he shut us down, saying that this one was HIS choice. HE was the one who had to deal with the parents who were upset, etc., etc., etc.