I read the whole thing and I have to say that sadly, it is very much accurate. Higher education is screwed in four ways:
1) Students are not prepared by high school, so in their first one to two years, they have to learn what high school did not teach. This is shifting the burden from public (free) education to quasi-private education paid by tuition. 
Correction: this varies enormously from state to state.  For example--and I'm sure this won't surprise anyone--students in Texas, the "no child left behind" state are much less prepared for college.  Of course the number of esl kids going straight to college from high schools which failed them is also higher.  Still, there are states where the public high schools are still doing an excellent job.
2) Tuition at 'public' universities has increased far more than inflation. And the increase is mostly used to offset the reduced amount of state subsidies. It does not go to faculty salary increases, to have a better classroom experience or anything like that, really. It is simply to cover the shortfall by the state. Many 'state' universities receive only in the order of 20-25% of their budget as state subsidies, trending down. 'State' universities should be described as 'quasi-private' universities, really.
Correction.  Unfortunately, nothing to correct here.  I haven't had a raise in three years.  Still, I have a job that I love, which puts me so far ahead of most Americans that I have no basis for complaint.  The truly sad thing is that the tuition hikes put state colleges out of the reach of the people they're designed for--the deserving young people of the state.  This is especially true as state universities try to lure more out-of-state students, to get the much higher out-of-state tuition payments.  
3) Students today are mostly treated as 'customers' with devastating consequences. Courses are taught as to maximize 'customer satisfaction' (meaning, minimize effort, maximize grades). I am not surprised that homework assignments, reading assignments and standards in general have been drastically lowered in the last two decades. Also, 'customer retention' is very high on the list, while forgetting that the societal 'product' of a college is not the entertainment value of the courses which are taught, but a capable, educated person leaving the place.
Correction:this is not true and if you talk to any of the faculty at any good institution of higher learning they'll tell you that this is absolutely not the case.  The problem is that there are students who think this is true, and so think they have a right to have a say in course content and management, their final grade, etc.  Which is a real problem.
4) Lastly, the problem which might burst the college bubble is that even successful graduates are no longer finding jobs which pay salaries which allow them to pay off their student loans in a reasonable timeframe. If that is the case, why go to college at all? Clearly, in the long run, higher education will stand and fall based on their real product. If it is found wanting, the whole system eventually will come crashing down. But for now, the whole focus is still on the consumer-student.