Actually, disgruntled though I am by the present state of affairs in academia, I am not without optimism.
Home schooling, some private secondary schools and colleges, and an ever-widening array of information sources (the net, and cable and satellite TV and radio, for example) may serve to diminish the power of the ivory tower.
I taught at Berkeley, Stanford and NYU for a time in the late 70's to the mid 80's and was shocked then by the low level I saw at these schools. Today when I talk to college age people I find it hopeless(I am no longer an academic.)
I feel as distant from them as if I were born 200 years ago. It is hard for me to be as sanguine as you are about the future of education in or nation even among elites.
I can only hope that the Leftist ascendancy of the 1960's is but a passing thing and as that generation goes some sort of sanity and equilibrium shall be restored. It shall take a strong and determined new generation to set things right, or so it seems to me. They will have to almost reinvent the wheel; it will seem a sort of "intellectual archeology.
Where there is a will there is a way, I guess. It is hard for me, however, to shake my pessimism.