I find that to be rather typical of a lot of the way in which University admissions are discussed in this country - a myopic focus on Oxbridge
Cant win can you. Not long ago I was accused of envy, as I argued that the UK has a number of strong academic departments, not all in Oxbridge.
Overseas demand for very top Universities is growing fast. Stamford, Harvard etc possibly faster than Oxbridge/London. (Titchy, I think the overseas market for other universities outside of niche courses is different.) Students will make multiple applications, to several countries. Observation suggests that Asians, in particular, can often misunderstand selection criteria, thinking top grades, perhaps achieved by very hard work and plenty of tutoring count, when actually grades are simply one way of assessing potential. This is a particular problem when applying to the US where selection criteria are even broader.
I am surprised at the 22%. It is very low in comparison with some of the better London Universities. (The comparable figure for LSE is around 75%) A good international student cohort aids international recognition and has all sorts of benefits.
A doctor friend in Asia is involved in collecting data for some major international medical research because her bio-medical scientist colleague studied at Cambridge, who are leading the project. Without pro-active support on the ground, cultural issues would probably discourage patients from allowing the data to be collected.
Similarly DS is now studying for a PhD in the US. Both his UG and Masters cohorts in London were phenomenally international and a high proportion of his peers are continuing along a road towards research and academia. His international network is already phenomenal: from Iceland to Argentina, through China and Nigeria, which, in his subject, is really valuable. (Actually one oddity is that though he now probably knows people at every top University in the US he barely knows anyone in the UK bar those who remained in London. I assume it is just his subject but the academic links - guest lecturers, visiting PhD students, etc, that he was exposed to, appeared almost exclusively international rather than from within the UK. My best guess is that Oxbridge UG remain in situ or swap city for their PhDs.)
Oxford and Cambridge need to be outward looking. They will continue to want to recruit top international students in increasing numbers. If they are under pressure to take more UK students from deprived backgrounds, something will have to give. My understanding is that they don't really want to expand (a decision LSE made) so it will get harder for applicants from both state and private schools to gain places. Which means more strong applicants at Durham, Warwick etc. It will be fine. We are very lucky to have a number of good universities.