They are interested in the bottom line, first and foremost, and in any case are being run by executives pulled from the same executive pool that other large corporations are drawing from.
The author needs to first carefully define the problem without reference to Steve Jobs or academia golden-age idealism, and then posit a roadmap away from the current business model.
Tier-2 private colleges are having a tough-ish time right now, it could be a way to differentiate and attract ambitious students- "after you've thrown your application into the goofy lottery system, why not apply here, where we take you seriously? As you can tell with this significantly less goofy admissions process!"
So, somewhat smart kids from Iowa will ask themselves: Why bother? I can't compete to get in, I can't compete when I am actually in there, and I can't compete when I get out. Forget this game, I'm taking my tiddly-winks and going home.
And that is where the tier-2 schools really shine. Vassar, Colorado School of Mines, the Claremonts, etc really can take those kids that aren't literally-cookie-cutter-perfect-snoflakes-drill-and-kill and make them really shine. Yeah, they won't be the CEO of Hundai or GE, but they will make a damn good Lt. Major, or a VP at 7-11, or a hell of a McDonald's franchise owner, or the best darn member of a school board that is always re-elected, or a real good child abuse prosecutor. You won't make billions, but you will make 3-4 million.
There really is a need here for B- students that deserve a good living. Getting rid of the darn SAT is a great way to attract them.
More and more colleges are being ran like businesses and the idea of spending time and money developing and running assessment centers does not make sense financially. Right now, candidates can be screened by a computer for test scores, GPAs, and key words on resumes. Alumni volunteer to interview potential students. The only paid staff are those reading essays (if they aren't graded electronically) and those making the final acceptance decision.
Universities may band together to create these assessment centers to share cost and upkeep, but even then costs are going to rise because the university still has to keep the yes/no admissions gatekeepers on staff.
Large universities seem to be doing fine with alumni donations and I'm not sure this method suggests enough of an increase in donations to make it a worthwhile investment for universities.