1. Arbitrarily small class sizes - the degree is not so much about the education as it is about the prestige of being in small class size. But long term, who cares? There are obviously candidates that have equal or higher capability if the universities can limit the class size. Besides those that don't go have cheaper market rates and are more attractive investments since the universities strategy is pretty much increase the demand by lowering supply arbitrarily.
2. The idea that you buy merit that is undeserved. To be honest, I am not sure why this is a big deal. Its not in the universities long term best interest to give its clients undeserved merit, because the market decides their merit, and if they pump out people that don't have skills over time their "Prestige" doesn't amount to much, and their customers will go elsewhere. To be honest, I think this is already starting to be the case.
Really I think this argument boils down to distasteful envy and jealousy of the things rich people can "buy", which if you examine it carefully isn't the case anyway.