Education on Higher Education

I ran across this article on The Economist the other day, and found it quite an interesting read. The Economist, as I'm sure many of you know, can be supremely pessimistic at times, but I am interested in hear what the readers of this site think with regards to the current state of higher/doctorate education.

Do you see anything that needs changing? If so, is there anything that could be done, or do we just have to sit in it?