This is probably a good thing. Too many students waste time and money performing the surface-level ritual of college without any of the substance that the surface-level ritual is meant to support.
Spending four years in a cloister of like-minded folks, free from banal concerns like work and meal prep, is a framework built for a specific purpose. Going to class, reading books, writing papers, working problem sets, taking exams, etc. are concrete, observable, trivially emulated behaviors meant to support and facilitate that purpose, not the purpose itself: absorbing, grappling with, and applying ideas.
An enormous segment of existing seats in undergrad - entire institutions - are built around cargo-culting actual higher education through trivial busywork, graded to low standards. These seats are the worst offenders in the student debt problem: students are allowed to waste years of their lives, and all the money they can borrow, on performing a ritual that everyone else knows is hollow. We need to be aggressively closing party schools, not adding more of them.
Another enormous segment of seats in freshman classes (at institutions with relaxed admissions but reasonable grading, like most state flagships) goes to people who will not graduate within six years. In some states, this is over half the college-bound population. These are a similar waste of time and money, and their occupants will not even have a fancy piece of paper to show for the time they spent filling these seats. We don't need more slots in state colleges, we need close to a 50% reduction.
There are few people with the mental horsepower for the intellectual work that college is really about. Fewer still with the desire and determination to put in the work on a sustained basis. This population already fits comfortably into existing elite schools and the better departments of existing average schools. It's crucial to find every single one of these kids and get them to an institution where they will be challenged and thrive, regardless of their socioeconomic circumstances. It's crucial to make sure their rightful slots are not taken up by the mediocre children of the well-connected, though the upper middle class will have earned a disproportionate share through cultural practices and beliefs. But trying to get more people from outside this population perform the ritual college is a fool's errand.
Expanding the population of students who can legitimately attack higher education by increasing the rigor and effectiveness of K12 is, on the other hand, a great idea.