I think they may not have a fair assessment of their own abilities because of prior hand holding.
I haven't seen the emotional catastrophe element that this article talks about. But, I did witness the abuse of the faculty.
I saw the entitlement my generation is often accused of first hand. Many students were hostile, rude and lazy. I gained a reputation for sticking up for professors and calling my fellow students out on their behavior. In part I do blame the staff. Though maybe they couldn't gain control because their hands were tied by policy.