Sadly, I think you're overlooking the extremely feudal nature of higher education - especially at the "leading" institutions - and how strongly many people want to be associated with the modern equivalent of the pomp, pageantry, and glory of the Sun King's court in the beautiful Palace of Versailles. No matter how expensive that is...

Of course, the ever-growing expense of all the pomp and palaces will eventually bankrupt the whole system - just as the expense of the French King's court at Versailles eventually lead to the French Revolution.