Couldn't agree more, EJennings!
Abolishing student grants and massively increasing fees has created a feeling amongst students and their parents that they are consumers and the university staff are there to serve them, which includes ensuring that they are always comfortable and happy and nobody is nasty to them. Taken to its extreme, it's the fault of staff for not giving them adequate teaching and support if anything goes wrong along the way or they don't get the grades they feel they deserve/want.
Additionally, of course, universities are competing to get students and one big factor in student HE choices is league tables, which include student feedback results. Of course students should be able to complain about things if merited, but universities give far too much prominence to student feedback in judging how well departments/lecturers/admin staff are doing. I used to be an administrator working with students and it was pitiful at times to see how frantic senior management were to avoid student complaints, even if they were clearly frivolous.
And finally, there is no doubt in my mind at all that there's been grade inflation. It was rare to get a First back in the early 80s when I was a student. Now it's not. There are far more students now than there were then. If anything, I'd have expected the %age of students getting a First to go down rather than up.