"we were discussing today in one compsci class how agile is something that only works if you don’t care about consistent quality and only care about always having the newest, shiniest, greatest."
My employer (Pivotal) uses XP across the company as a way of building consistently high quality software products at a sustainable pace. We have something of a reputation for doing this over the past 20 years with Pivotal Labs.
"And how, if you are working on software for ESA, or working for one of the largest internet retailers, or if you’re writing a control software for railway switches, waterfall is the only possible option."
This is partial nonsense.
Firstly, unmodified waterfall was never an explicit software development methodology, it was an example used by Winston Royce in 1970 about how NOT to run a software project. http://www.cs.umd.edu/class/spring2003/cmsc838p/Process/wate...
You think Amazon delivers software in a waterfall? Amazon has dozens of teams building microservices in parallel with thousands of releases to production happening daily. http://joshuaseiden.com/blog/2013/12/amazon-deploys-to-produ...
I was the General Manager of Operations for a Class 1 railway, and know something about how railways systems were design and built. Control software for railway switches is written around once every 25 years, so yes, one can do that in a more deliberately planned manner. Financial and billing software for railways is mostly Mainframe or packaged (SAP or Oracle), so that too, was built in a waterfall, which was by no means a guarantor of quality in practice, with many problems being discovered only after deployment.
Yard management systems and equipment tracking can be built in an agile manner, though mostly were built in the 80s and 90s so only add-ons and additions are being built in this way. Much of the surrounding demand management, BI, order management, and forecasting systems are built (at worst) in an ad hoc manner or (at best) in an agile manner, because the level of change required is too high to warrant the lead times of a waterfall-planned approach.
The point is that most companies that develop new products do not do so in a waterfall manner, they do it in a manner that allows for continuous feedback, because they've learned that quality in the face of uncertain requirements requires such feedback.
"Even if the target is moving, agile is never able to provide quality."
The most polite thing I can say to this is, "citation needed".
Agile methods are an attempt to use Lean product development principles in the realm of software. I think you may want to learn more about them before drawing such conclusions.