I am a little torn on this issue. I don’t think the UC schools have ever been merit-based only wrt their admission policy.
I believe the UC schools still deploying the 60:40 ratio for freshman admissions. That is, 60% of the available spots are to be used to admit incoming freshmen based strictly on academics only. And the other 40% is when the schools would take into account the student’s extra-curricula activities, economic background, etc. If this is still the case then it begs the question – is it fair if, all things being equal, a student got admitted because they came from a “poor” family over a student that came from a “wealthy” family? If the schools have been using the financial background and one of the metrics for admission then how different is it if they were to add race to category? I guess in this case if you’re rich and Asian/White then you’re doubly screwed.

That said, I’ve always told my kids to make sure that just make sure that they make the grades to ensure that they are the 60 percenter and take the decision making out of the hands of the schools.