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Grognor comments on Muehlhauser-Wang Dialogue - Less Wrong
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The consequentialist argument is as follows:
Lowering the status of people who make basic mistakes causes them to be less likely to make those mistakes. However, you can't demand that non-intelligent people don't make basic mistakes, as they are going to make them anyway. So demand that smart people do better and maybe they will.
The reasoning is the same as Sark Julian's here/here.
I guess the word "right" threw you off. I am a consequentialist.
I'd guess that such status lowering mainly benefits in communicating desired social norms to bystanders. I'm not sure we can expect those whose status is lowered to accept the social norm, or at least not right away.
In general, I'm very uncertain about the best way to persuade people that they could stand to shape up.