One of my more tin-hattish ideas:

higher ed has drifted toward more of an “all inclusive resort” model over the last 50 years where students get to live in a “parallel” version of the city with their own police force, medical center, dining halls, entertainment venues, etc. this is an intentional move to let them live in a utopian setting that pacifies them to prevent widespread student activism like the 70s

I like the organic mix of university and city development that University of Michigan has in Ann Arbor. It feels like the two grew together and coexist. I do get that feeling you describe when in Wayne State downtown though