I think that what's needed is a separation of concerns. Instead of a monolithic institution that is responsible for research, student enlightenment, self-discovery, vocational training, athletic competition, etc, we could move towards a micro-institution architecture and scale the different micro-institutions according to demand. Importantly, we wouldn't cross-subsidize the institutions, so if someone only wanted self-discovery for example, they could just pay for that and get a cheaper price than someone who wanted both self-discovery and vocational training. People could also decide how much of each they need according to their circumstances.