Well, there is a growing movement of conservatives that are unimpressed with this and with the general politics of universities, and who are becoming anti-college (and the booming cost of the said colleges provides additional arguments). I think it is a bit dangerous, but in essence it joins your argument.
I personally think that the education aspect of colleges is massively overrated, that the quality of the university pretty much all comes from the quality of its recruitment (its students). The teaching is typically very average (researchers aren't necessarily good professors). But if the game is that this badge is required to land a high paying job, a kid today doesn't really have a choice. It's kind of a prisonner dilemna.
We could have a system where the name of the university wouldn't matter that much. That's pretty much how Germany works if I understand correctly.