Take a look at my response to the other response to my grandparent comment.
I think the role of a university is just too large. Universities cannot do everything at once, so bloating is a concomitant effect. This bloating decreases the efficacy of the university system on all fronts.
A good college is all of what you say, but that's not what college is today (for most people who go to college, not top-tier Ivy Leagues and such). For the less fortunate, college is more of a "slog your way through four years of shitty living and disinterest to get a probably worthless piece of paper".
What could Lambda School look like at its best?
- self-directed learning under the close personal supervision of an expert tutor
- being deeply immersed amongst a group of highly motivated people learning at the same time that you can reflect off
- time and space to learn and grow and build a reputation and portfolio
- help connecting you with industry or other fields for a job when you finish
...but wait isn't this what a good college already is?