Although it can be argued that current higher education is being commoditized, the OP is making an unrealistic comparison to some idealized past where education

Although it can be argued that current higher education is being commoditized, the OP is making an unrealistic comparison to some idealized past where education meant more and people were more educated simply because they went to college. Looking at the recent links on HN about the entrance exam to Harvard et al. in 1900s, I would be very skeptical that the students then learned greater or more applicable skills. Memorizing the philosophies of esoteric 18th century Frenchmen and the intricacies of "noble society" has equally negligible impact on real-life skills. It is true that education is more commoditized - more people go to college and there is greater opportunity to obtain education - but commoditization by itself does not mean a decrease in quality. Because it is now a commodity, brand name means much more.