I've believed for years that public universities are essentially doomed. The idea of professors primarily being researchers with a bit of teaching on the side carries too high a cost.

Instead I think states should adopt a four-year community college model. Hire people to teach and not to research. I know most university educated people look down at community colleges as little more than extended high schools but the people I've know that have attended community colleges said the quality of instruction they received was much better than at the university level (most went on to get a university degree).