The only way that GMAT score range makes sense is if it's like people are just required to take it as part of the school's accreditation (sp?) rules or something.
Like let's say I want to be an Olympic sprinter, to qualify I have to run the 100 yard dash under whatever it is, like ten seconds. But then if I'm qualifying for some local church's fun-run, they maybe just want to make sure I'm physically capable of running without having a heart attack and so they say, "Okay, run around the parking lot and show us you're capable of putting one foot in front of the other."
This may be my worst analogy yet, but what I'm getting at is there's probably a difference between competing at the top level where you need to have cut-offs to make sure you're only getting the best, as opposed to taking whoever wants to give you money so you can give them an MBA.
As for the "sh*tting on the floor" test that you mentioned, I hope I get that test instead of answering questions about my "greatest weaknesses" and "ethical dilemmas."