I am arguing this is mostly explained by universities being taken over mba-type managers: launching new products (i.e non-sensical degrees), turning university study into an "experience", ... is all the sort of thing that mba type do and not unique to university (see Boing, Intel, ...)

But the core idea of university remains as sound and essential to a well-functioning society as it gets. From time immemorial you needed gatekeepers to recognised professions who: a) provide hands-on training to the next generation b) certify that a trainer has reached a sufficient level of mastery to practice the profession. Calling this process "selling indulgence" is my issue with your argument.