In some form or another, the practice of recognizing grades continues all through school. There is honor roll, which is published. In middle school, there is the ABC dance for kids who didn't get any D's or E's. The list of kids who get to go is posted on the wall. At the end of the year, there are academic awards in each subject, plus awards for kids who got all As and kids who made honor roll all year. So, OP, it's not like it's something unique to your child's school and it's something that isn't going to go away.
But, there ae also awards for great athletes and great artists. As one PP mentioned, there are awards for most organized and the like in early years. In middle school there is an award based on core values (respect, responsibility and easiness).