It surprises me to learn that there are still colleges telling families there is no advantage to applying Early Decision. Counselors who dissuade needy students who know where they want to go from applying ED are setting them up for big disappointments. Gee Timmy, I know you really want to go to XYZ College, but you should wait until they've filled half the class and blown two-thirds of their aid budget on the ED kids and then compete with the massive Regular Decision pool for the few remaining seats and dollars. This approach seems unwise.
Colleges are full of very smart people.
Of course it would be nicer to let kids wait and grow through their senior year, yet I am unconvinced that anyone is being damaged. If evidence emerges to suggest that transfer rates rise and graduation rates fall with growth in ED activity, that would certainly be a serious issue. But by then, the colleges would begin to recognize that it is in their self-interest to modify their admission policies to reduce attrition. Be sure to include your name and affiliation. Legitimate requests for anonymity will be honored.