Amusingly, willingness and capacity to conform to a system you are paying $30k a year for is a pretty good proxy for general intelligence. So maybe it's not that bad?!
It depends on what we think education is for. If the goal is to teach students, it's not so great. If the goal is to signal future employers the intelligence of the student, Maybe that's ok. But maybe the future employers should be paying the tuition instead of the student.