Grade Boundaries

I never really thought about this but grades are alomst aways set according to previous performance and the history of the qualification.
The piece in the TES about examiners not knowing where to set boundaries is very relevant when you hear some of the horror stories from pilot schemes where NONE of the Year 11 managed to "pass" the practice FS tests.
SO will that examiners err on the side of caution?
Probably, is this a bad thing - in the short term no, but in the long term it risks devalueing Diplomas.