This is a problem for the exact reason you mention, but also:
> This includes facilities, support services, activities, athletics. Then there is just the socialization, dorm experience, meeting people, parties
> ...they need the ridiculously high tuition money (including from out-of-state and international students as mentioned)
And these students from China, India, and elsewhere don't care about the great basketball team at the university or the football tailgating events or the pool parties! (or at least not as much :)
The bloat has also resulted in a proliferation of degree programs by focusing on what can make the schools the most money. Thus not providing the real-world/educational requirements that may be necessary but not as "fun".