I was curious about this topic, so I looked it up and found this Atlantic article.
It begins:
if the purpose of academic grading is to communicate accurate and specific information about learning, letter, or points-based grades, are a woefully blunt and inadequate instrument. Worse, points-based grading undermines learning and creativity, rewards cheating, damages students' peer relationships and trust in their teachers, encourages students to avoid challenging work, and teaches students to value grades over knowledge.
Also, to clear up a possible misunderstanding (that I had and others may have), getting rid of letter grades does not mean getting rid of evaluation. Instead, students are assessed on whether they are achieving/not achieving proficiency in specific skills.