Excellent post.

The justification has historically been about teaching students to think critically, to better understand perspective and context, and be able to communicate thought through rhetoric and dialogue. To that end, I'm skeptical that is achieved nearly as consistently as in the past (not the the past was nearly perfect). The other justification has been in hard schools, such as STEM, where it seems more difficult to develop those skills without the college structure. On the latter justification we seem to be doing okay.

The objective should be to get the best education one can get, and that education should be a lifelong process. A solid university education (not credential) can be key part of that process for many. It should not be the expectation for those not suited or inclined, and that education no longer needs to be forced at a pre-determined ("college") age.

But to your first point, universities need to reflect on their current trajectories.