The ultra hard core are simply dying out.
There now in control of family business and the Saudi industries, men who are the sons and nephews and perhaps grand sons of founders who are in fact American educated. I have met several who came here and received college educations. They shun the sinful large state universities and attend smaller universities.
They are Saudi and they are Muslim but they are not fanatics.
Some time back, I met a young Saudi electrical engineer who was real and knew his stuff. In the past, Saudi’s had degrees but were not really very good and didn’t like to work. He held his own amidst the Indian and Americans. He worked for a very large American company with extensive facilities in their Saudi office
There is definitely cultural change taking place in Saudi Arabia, and they have a very significant demographic bulge of youth/young adults pushing it.
As you point out, there is widespread Western education among the elites, and even poor Saudi youth have grown up with a window on the world through the Internet.