So I think that it is OK to be taking these factors into account at the college admissions level, but I am not sure if the "neutral test administration organization" is the correct place for this to be at.
This is a very thorny issue, and I am uncomfortable with a centralized organization influencing it to such a large degree.
Whether, and how much, to take into account these factors should be a local decision made by the college itself.
The problem with doing it at the admission level is you have to adjust ALL admissions processes. Doing it at the SAT level avoids the problem where disadvantaged kids are cut off by hard score limits right at the start of the process.
It could also be used to signal to schools which kids are likely to need some remedial classes in the first year despite what they scored on the SAT. Of course one can imagine a scenario where the admissions looks at the adversity score to weed out kids who they don't think are going to be prepared regardless of how smart they are.
This whole process assumes that the universities are interested in reforming the kids that the school system failed in the first place.
I would imagine that elite schools won't rely on this very heavily, but not every school has the resources to do a "holistic" admissions process, and not every student has the desire to go through such a process.
This is a very thorny issue, and I am uncomfortable with a centralized organization influencing it to such a large degree.
Whether, and how much, to take into account these factors should be a local decision made by the college itself.