Also its around the age you might start learning empathy, dont want that
I'm not sure how much these people would actually learn in college, but the idea is that some exposure to the humanities and the arts and to people who have different aspirations and life experiences would give them some interest in considering the consequences and moral worth of their actions.
Maybe that doesn't actually happen and these people will always be amoral. But that's the hope.
I can see how college can serve to lose one's arrogance, but why couldn't that happen while doing real work? (in general -- don't know about Palantir)