Stuff the industry; CS isn't vocational training.
Most of the coding that goes on in the industry is mind numbingly dull from a CS perspective.
The idea that the industry should play fiddle, and CS should dance to the tune, is ridiculous.
This article fails to define what it means by "stagnating". "Stagnating" isn't a suitable single word for describing the memory of an experience (such as an undergrad program) which wasn't what one expected.
A CS department stagnates when it doesn't publish papers, I would think. Just like a political science department or English department. (An English department isn't said to be stagnating because it doesn't teach people how to speak English.)
As far as the undergrads go, they would be poorly served if the focus of the program was to teach them some application stack du jour. Even if that's what the industry wants today, that may change by the time they graduate.