I could not clear IIT in two attempts and due to a blind pursual of the dream to get into IITs, I was not able to concentrate even on normal syllabus. This made it tough for me to compete even for other engineering colleges. Ultimately, I went on to do B.Sc.(H) and then did MCA from a reputed institute and now am earning a decent income in a bangalore IT company. Am I faring really bad? Not at all in my view. I have seen the futility of continuing beyond 2nd attempt and thanks to that,I have progressed in life.
So, think of life beyond IITs also.In any good system, there are always restrictions for attempts.The same should be the case with IITs also.Let there me some minimal regulation. If there is any problem with the borads like WB where they don't award enough marks, IITs might attempt some grading system or the WB authoritis may be forced to change the system. However, IITs are premier institute and let them decide which are the better students in their own way.
You have studied there and you are questioning your own teachers wise decision. They have seen many more batches compared to you and seen the relatice degradation and then came to this conclusion.