The media is portraying Swinburne University of Technology's announcement of an Undergraduate Certificate of Higher Education Studies, as a qualifications for dropouts. But this is a positive move, which is an extension of current practice by universities. When a student is unable to complete their program of study it has been usual to offer them a lesser qualification. With postgraduates this could be a graduate certificate. But until recently there was no equivalent for undergraduates, the shortest qualification being a diploma (one year of study). With the advent of undergraduate certificates, students can be offered recognition for their effort.
My preference would be for universities to go further and offer nested qualifications. That is, rather than receiving a generic certificate, they would get a qualification in their specific field. This would be done by designing their program as a certificate, followed by diploma, advanced diploma and then degree. The student would be awarded each without having to withdraw. I have had the wrenching experience of having to decide should I take the qualification now, or go on to further study. I chose to take what I could get, as I suspect many from low SES backgrounds would.