I agree with the OP, but I disagree with Farside because I'm guessing its not the kids of the rich who will end up being "encouraged" to go into apprenticeships...
Higher education should be accessible to all; however I do think that students should be better advised before going to uni. In other words, better career advice.
I also think unis have to take some responsibility for keeping the standards high. They should turf inadequate students out in the first year, saving everyone a lot of time and money. The students will then know that uni wasn't for them, but still had the chance of a shot at it.
More advice should be given about what a degree can actually do for you. If you have an innate love of learning, for learning's sake, then a degree is the perfect option. But students are told a degree will get them a high-flying job. THis is a lie in many cases.
Subjects are more important than grades, it seems to me. So you should only go for a subject you "enjoy" if you have a real passion for it and cannot imagine wanting to study anything else. Otherwise practical degrees: law, economics, engineering, are what I'll be advising my DC to take, if they want to go to uni.
I will warn them that a degree doesn't have as much value as it used to, there's no guarantee of a job, it's a risk so again, it goes back to having an innate love of learning, doing it for the sake of learning.
But I'll never discourage my DC from going to uni because it's not just about the career prospects, is it. IT's about the independance, an unique opportunity to mingle with people from all over the world, broaden your horizons and expand your world view in a way an apprenticeship never will.
I think, overall, the more children that go to uni, the more enlightened the general population becomes, and that's a good thing.