I think it is more demoralizing for those who work hard and still hits a wall rather than for those who don't work hard and hits a wall. I figure that if I really want something then I will work, if it didn't mean that much then I obviously don't care so it is fine too.The problem is that eventually, this student will hit a wall. Maybe in high school, maybe not until grad school... but at *some* point in everyone's life, it takes hard work to make progress.
I admit though, this is usually the point when people stop making progress... :-)
Everyone no matter who they are or how much they work will always have limitations.