I think I may have a solution. It is not perfect and I can guarantee that it is bound to tick off a lot of people, so here it goes.
Make step one the test it was intended to be: a competency-based exam that is simply pass-fail. Then that leaves the issue of how do you screen / rank applicants for residency programs. Well, introduce another test!
Now bear with me, this new test will be 4 hours max. It will be composed of four sections with 10 minute breaks in between.
The first section will be a rehash of CARS type passages that test your ability to read and synthesize information. I would like to see the passages pertaining to philosophy and ethics as they apply to advances in medicine and healthcare administration. If we are all going to be neurotic Med students, might as well focus our efforts on learning ethical/philosophical frameworks to confront issues like healthcare/resource utilization, advancements in technology such as gene editing, artificial intelligence, etc. These advances are poised to change the way we practice medicine in the future so we must be able to adapt. I suppose the best way to prepare for this section is to spend an hour a day reading an article from The New Yorker or BBC news.
The second section will simply be an IQ test. Not sure what kinds are available right now but put a team of psychologists in a room and I'm sure they can come up with something. At the top of my head, maybe include some logic games or puzzles.p
The third section will be an EQ test. Again, not sure how this will play out but maybe come up with some type of Casper like test to see how you would react when confronted with certain ethical dilemmas.
The fourth section will be specialty specific. For example, if you want to go into any type of surgery, this section could test you on anatomy, spatial orientation, being able to read CT/MRI scans and identify structures as being normal versus abnormal. This will largely depend on what program directors what see in their applicants. You could have the option to take another one as a back up specialty like IM/FM but the IM / FM program directors will not be able to see that you took the surgical one to control for bias.
Last and finally, this section will be optional on conducting an evaluation in another language. Nothing too crazy, it will just require you to possess high School level knowledge of a foreign language with an emphasis on medical terminology.
I suppose the best comparison would be to make it like applying to college. You have the ACT / SAT and a subject test in the thing you want to major in with a foreign language component thrown in.
Edit: typo on the number of sections