In general, I agree with JC100's position on the importance of open universities where people are free to study as they wish. If we only sponsored academic study into fields that were immediately profitable our society would be much poorer for it. However, during my 6 years in uni (4 yr B.A., 2 yr M.A., both in Environmental Policy Studies), I also witnessed an awful lot of people who really shouldn't have been taking up seats in those lecture halls.
My undergrad program had 220 students in the 1st year, 150 in 2nd, 75 in 3rd and just 24 of us made it all the way through to 4th year. So many people end up in a university program just because they don't really know what they want to study but Mom and Dad say they need to go to university. I took a few years off after high school to figure out what I wanted to do before going back to school at 23 to study what I was passionate about.
On my first day, I was expecting vigorous intellectual debates with earnest professors wearing jackets with elbow patches. What I got was more like a grade 9 science class, with a bunch of 17 and 18 year olds whispering back and forth about where the party was going to be that night.
I have no problem whatsoever with raising university admission requirements significantly and possibly also raising tuition fees. My one reservation on raising fees is that financial aid programs would have to become more accessible as well to make sure that people without a ton of money, like my younger self, can still access quality education.
FWIW, I've spent the last 10 years working in the industrial wastewater treatment field. I design, fabricate and install water treatment systems and conduct environmental regulatory audits. These things have essentially nothing to do with what I studied at university but my time there was still incredibly valuable to my career. I learned how to research, write, collaborate and present technical information to non-technical audiences. Most importantly, I learned how to learn.