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The actual evidence on the value of standardized tests is that they are actually quite useful in assessing likely outcomes: https://slate.com/technology/2014/04/what-do-sat-and-iq-tests-measure-general-intelligence-predicts-school-and-life-success.html.
The real reason they are being discarded is because they highlight significant gaps between different racial/ethnic groups, and that means places like IUPUI could never hit their diversity or enrollment goals without discounting the test’s value or abandoning it altogether. After all, what gets most of the attention in this article and others is the figures associated with the composition of the student body. What doesn’t get attention is the actual outcomes of students with subpar test results, which typically means an extended period of time to complete what should be a 4 year degree and elevated dropout rates, not to mention questions about whether the cost of the degree was justified by subsequent employment. I suspect IUPUI’s administrators have a good idea of the answers to that, but don’t want to be asked.