Based on my experience, we'd get better real world results if we abandoned most universities and promoted community colleges to full undergrad level. My best teachers by far were at a community college. Probably because that's all they did. No begrudgingly 'teaching' students while really wanting to do research.

Not that there isn't a place for research teaching, and students along that path, but like 99% of everyone else would get better results from a different academic culture.