I agree with a lot of that, Ghoti. The problem is in the details. With the exception of a few large research universities and ivy league and other highly selectives (don't get me started there), higher ed as we know it is in crisis now, or will be soon. Demographic trends alone are causing many colleges to close or consolidate. Maybe that's not all bad, but the way it's going to play out and some of the implications are scary.
The cost of compliance with regulations in terms of dollars and time is absolutely outrageous. There are a small number of software systems that run schools, and just keeping up with federal regs is already overly burdensome and an absolute productivity killer. When it comes to individual states, California and Texas (surprisingly on Texas) already have complex reporting requirements and systems that go way beyond the norm. Multiply that out to 50 states and it's guaranteed to be much worse over time, not better. As an example of how things go, the Michigan legislature wanted to track job related outcomes from secondary through higher ed. All well and good, except the way that got implemented by the state (before Whitmer, to be fair) is this massive data collection mandate that makes my blood boil. The bureaucratic mindset and ability to rationalize are almost beyond comprehension. The software companies will make more money and increase their licensing costs more than the usurious norm, but schools won't be able to absorb it. For profit schools are predators for the most part, but they're a tiny, tiny minority compared to the non-profit norm.
I'm all for less costly alternatives and kids getting into the trades, but that isn't for everyone. AI and other trends that are dumbing us down and making us redundant are maybe the final nail in the coffin. I'd love to see DOE get defanged, but I fear what comes next if it's eliminated will be much worse.
If DeptEd gets closed and the stupid regulations get axed, especially quotas, specific classes, specific resources, social engineering, etc., it would be a LOT easier and cheaper for higher ed institutions to comply with reasonable stuff, like maybe fire codes, enough gloves in student chemistry labs, and keeping the library open 24/7 except Christmas, etc.
If the college/university police departments were done away with, and schools no longer engaged in "criminal justice" activities, which are designed to hide crime and protect criminals all in the name of making the campuses look like safe places to send young adults, the reporting mechanism that's already in place for local law enforcement to report crimes via states to the Feds (UCR/NIBRS) would take care of both the reporting and more proper handling of crime. It would also save a lot of $$$$$$$ because properly training, equipping, arming, insuring, etc. police officers is very expensive.
The Big 10 schools, of which I attended three at one time or another, are very large, do a lot of research, and provide a good, solid education, which allow graduates to work in their chosen fields and compete for those jobs against graduates from pretty much everywhere. Not very expensive back then, but now,

IDK how good the actual education at these schools is, anymore, but if the University of Minnesota is an indicator, there are a LOT of foreign students attending here Unfortunately, that takes away space from US students

UM graduates in high demand by local employers, which is good for Minnesota's kids
University of Minnesota used to charge $125 a quarter flat rate for a full load (12 credits or more) for resident tuition. Dad made money on me going there because I could register for 4 credits of violin and the school paid his salary plus the extra for private lessons for him to teach

so what we paid (tuition + lab fee for private violin lessons), which I would have taken from my Dad for nothing if weren't enrolled at the U, was less than what he got paid to teach me

FWIW, UM now charges $17,370 undergraduate tuiton/fees per year (2 semesters) for residents. Nonresidents pay $38,518.
When I was at UW-Madison, tuition was still less than $300 a semester for residents (Minnesota and Wisconsin had/still have reciprocity). UW now charges $10,006 per year (2 semesters) for residents, with some programs more, and non-residents pay at least $40,505.
In fairness, basic undergraduate courses like calculus, English Comp, etc. at UM and UW were HUGE. Some auditoriums could seat well over 2000 people. One class I took met in an auditorium, which could seat 4000. Due to economies of scale, giant, basic classes can make money for universities to subsidize higher level courses, which require more Professor involvement, and less/no TA. A good example is a calculus course. One Professor to 2000 students, with a TA for every 20-25. The TA gets paid in reduced/free tuition and a low pay rate to grade papers and help students that ask, and experience and sometimes professional/internship hours for some types of teaching/coaching. The money saved on not having a Professor of any rank for every 20-25 students in calculus, alone, is tremendous, and allows for small, specialty courses, which might have a Professor and no TA for 10-15 (generally graduate) students.
I was lucky enough to grow up in Minneapolis where and when both public and private K-12 schools were excellent. How good a school was depended greatly on the socioeconomic strata the money came from. Schools in more well-to places tended to do better than those in poorer areas. Many different factors, although parental involvement made a huge difference in how well schools in poorer areas did in relation to schools in similar areas with little or no parental involvement. But even the "worst" schools weren't very far behind the "best" schools.
I'm hoping if DeptEd gets done away with, so will the standardized tests that teachers teach, instead of teaching what the kids need to know. Schools were a lot better before DeptEd started micromanaging, pressuring, and punishing with those tests.