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the best incoming math majors at harvard take math 55a, a course which is limited to first year students but which your typical first year graduate student at the university of louisville would almost certainly fail. in general the courses that a typical math major will take at harvard/princeton/mit will be completely different in breadth and depth than the courses that a typical math major at an average public school will take (of course, your typical math major at harvard/princeton/mit is significantly more intelligent than your typical math major at the above schools).

this being said, there definitely are grade inflation issues at ivy league schools in non-quantitative majors. for the most part these issues aren't shared by academic peers of ivy league schools like caltech/mit/berkeley/chicago etc (not sure about stanford) etc.