This is a sensitive topic for me, since I'm in love with studying.
I have to disagree with a few points, namely that universities have developed into bureaucracies primarily seeking to further careers. I worked as an undergraduate researcher in a neuroscience lab, and although publication was always a pressure, I don't know anyone who wasn't there because they didn't want to be. Studying the same subject on such an exclusive basis for 5 years or more can cause burnout, but everyone in the lab came in excited at the possibilities of solving new problems.
However, universities can do more to ensure that their work helps the community directly - big research needs to continue unabated, or perhaps even on an accelerated schedule, but students and many professors can shift their focus from class-centric papers and projects to community-based projects.
Actually, this is the startup I'm working on right now, and it came about because students "do not want to churn out meaningless solutions to irrelevant problems", they want to do meaningful things.