I guess I feel the opposite -- although I think the system of higher education is fundamentally broken in the US, I see this amplifying problems, not improving them.

Already I think the difference in actual education supplied by elite colleges vs less well-known colleges is vastly exaggerated (most evidence suggests the differences are preexisting, due to students, and that variance is just greater at some schools than others). So the branding thing is somewhat empty and unnecessary. And as for the skill acquisition, I'm more inclined to agree with you there, although I think there's already a dangerous tendency to equate degree with skillset (that is, "you are what your degree is"). Both of these lead to a very stereotyped, one-dimensional perspective on people.

I guess overall I just see this as amplifying inequality trends that are already unjustified, worsening societal problems. There's too much of an all-or-nothing attitude about human beings at the moment, and this just makes it worse by extending it to colleges writ large.

I think there's a lot of unnecessary degree work out there, and think academics is basically broken, but this trend isn't really the best one in my opinion, unless it's ultimately leading to complete collapse, elite colleges and all, and some kind of restructuring. But I don't see that happening. To me it seems like this is just reifying prejudice.