It is qute costly as well, though. I have that kind of infrastructure at my place, maybe not so advanced, but better than most, and it does cost a lot to maintain. I don't know the exact numbers, but I heard what different components of that infrastructure cost. There is security, there are data centers, computer rooms, electricity, etc. Lots to pay for.
I personally don't agree that the state decides what a university degree is, nor do I believe that universities perpetuate the situation. They do "sell" it to the masses, but it is the masses that can choose NOT to buy it. Yet we keep buying it. To me, it is a simple supply-demand situation where people come and give you their money for a piece of paper you are happy to provide. A service economy, if you will.
The only fault of the state here is not doing anything about it. That said, they can't do much about it because of the 3 factors I described above. It is a vicious cycle. People also feel locked because university degrees do increase your marketability. That, and the fact that we always hope somebody else will do it for us.
The reality is that things will only change when people back their opposition to it with action - by not actually investing any more money into university education. While I am skeptical about it happening any time soon, I do think it is the kind of "peaceful" revolution we need. Forcing universities to change by simply not giving them your money. Brilliant!