For the most part, these are really good responses.
I attended school for a really long time, worked in both a university and college setting, and had a family member who was a professor for 40 years. I feel fairly well qualified to opine on a few of the points brought up, good and bad:
1.) The "top" universities truly do attract the best talent, for the most part. Private institutions are allowed to have their own admissions criteria entirely, and have always allowed for "legacy" students to have an easier time getting in. This is a relic of a time when your name and pedigree got you into these schools, as they were thought of as academic, but also social and finishing schools. In fact, many womens colleges were no more than just finishing schools, but have now transitioned to being real, and very rigorous, institutions of higher learning. Is this bad? Yes. Education in general used to be only for the aristocracy, not for all of you (or me). It was kept that way for a reason; education allows you to cultivate your mind, which helps you thrive in life and provides you with alternative ways of living, other than slaving away for some rich person.
2.) Being not-rich and from Midwest labor stock, I was taught the value of one of the great progressive achievements in our country, the building of land-grant, public research universities (UNL being a great example of one). These schools are tasked with serving the citizens of their state, receive public funds to help offset the cost of operating, offer deeply discounted tuition to their in-state population, and in some cases used to be entirely free. On top of that, many of them have achieved a level of quality that rivals or exceeds their private counterparts (Cal Berkeley, UCLA, Michigan, Virginia, Wisconsin, North Carolina all come to mind, and there are many others now). You can get just as good an education at Michigan as you can at Harvard, and at a fraction of the cost if you are in-state.
3.) The GI bill benefited this country in ways that we are still experiencing, but have been going down over time; when you make access to education (and I would include trade schools and community colleges here too, but education reform is complex and I don't want to get into that) easier and more affordable for those who would not necessarily have had those opportunities, you dramatically increase the opulence of your country. Period.
These scams are a reaction to how increasingly difficult it is to get into a school with a "big name," public or private, due to online applications making it easy for students to spam apps to 20+ schools, making competition for admission VERY tough.
Remember: Education used to just be for the elites. And believe me, elites have been trying to take it away ever since, particularly those who would de-fund education and decrease regulations that these institutions should abide by in order to provide ready, equal access so that more people can rise up out of poverty or tougher circumstances and have more choices in life.