Exactly. Another case where this happens is with credit/point based systems for things like settlement/citizenship that effectively allows governments to discriminate freely based on vague criteria.
I think point based systems are the most fair and not arbitrary, since points are usually awarded for things like age, degree, language proficiency. That's the least discriminating way to steer immigration.
From what I've read - but have not myself looked into - Australia has been using this system for some time, and wants very much to move on from it, as it has not worked well in practice.