This is so sad. I found the quote "one way to destroy a culture, with lots of white paint" very poignant. Institutions everywhere increasingly seem to want to just make everything bland and safe.
Colleges have become an echo chamber centered around profits and "the experience". A library card is a better investment; one that comes with more freedom.
I also find that its is not even individuals in the institutions but somehow the collective that causes this. I do not think this is the end of such places though as this kind of stuff has happened before and I think people will always find and make new spaces to make their own culture, the destruction of such places seems almost inevitable as they gain more and more notoriety.
It's also likely that these sorts of places will move off campus if there is truly a need for them. There are plenty of well-off alumni of Senior House, and erecting a building and maintaining the culture of Senior House off campus is something they could do if it is really that important to them.