The interaction with the other students is part of the learning. The Greeks would have argued it was the most important
The Greeks first created the Western Liberal educational system, where they taught the liberal arts. Before conservatives get upset, liberal here means "free" as opposed to "slave". The opposite of the liberal arts (things a free person needs to know) would be the servile arts(studies for slaves).
The Greeks had all sorts of government systems that their free people participated in, republics, democracies, oligarchies, theocracies, constitutional monarchies, etc. But all these systems were political in some way. Debate was the most important skill that a free person could have, so that was the center of their education.
To train in debate, students need to interact with each other. There needs to be diversity of views and backgrounds, so literally the quota system began at the same time as the Western educational system. This diversity and debate created an ever evolving system that has made it the envy of the world, along being a huge headache for those that govern.
The Middle Eastern system did not use quotas. It strove to pick the best students, without any thought to diversity. That meant it kept picking the same type of students, as old teachers picked students like themselves. Their system does not evolve, and that becomes a problem over time.