From a social-emotional perspective it might help a lot of kids at least understand that someone recognizes they are working hard, and maybe doesn't discourage them from wanting to learn. I personally think I would have benefited more from someone saying "we know you are trying just as much, if not more than your peers, but unfortunately the system doesn't fit the way you need to learn all the time", instead of "Tim is a smart kid, he just isn't working to his full potential".

Would leave less kids with the shame of not doing as well as their peers, while they're exerting more effort than they are. I would often just not do stuff, because then I knew I didn't try and fail.

Edit - mobile typing kills me