Earlier quoted context omitted.
This is the view of people who have not really looked at university budgets. "experiences" are cheap compared to headcount. Buildings and experiences are mainly funded by outside donation specifically for the experience or building. People do not often donate to "expand salaries and headcount for faculty and administrators". The result is that students pay for headcount and donors pay for experiences. It isn't just a…
On the research point, why are research and teaching commingled? Both are important, but it seems that they require very different skillsets. Would we be better off filling universities primarily with people who love teaching, and are great at it, and having some other kind of institution (or some separate division of universities) do the research? Is this heresy?
There's a meme in research that teaching helps you do better at research. The story sounds plausible: to do a good job at teaching, you break the subject down into its component parts and tease out the essence, then package that up to deliver it. Perhaps through this process of repeatedly breaking your subject down to teach it, this process will eventually lead you to think about something differently, and then maybe you get an idea for your research. I've talked to people that say they have had this happen to them.
Partly because the idea that teaching is hard is heretical, though, professors really de-prioritize teaching when they are mentoring new professors. So not much in the way of classroom skill gets passed down from generation to generation, and it's up to the individual professor to re-discover how to teach when they start their career. Outcomes vary. Additionally, because of the idea that teaching is not hard, new professors (and professor trainees) are discouraged from spending too much time on teaching, so in my experience, when it's done well, it's done either by someone that takes more time than they ought (potentially at the expense of their career) or someone that is just so great at everything they do, that it works out okay.
This means there are just not that many people floating around who know how to teach and are amped up to do it. You see this when you try to staff "lecturer" positions at US universities, where that term means "someone who teaches but does no research." Those positions might even come with their own analogue to the tenure track! And you can interview dozens of people that can't really lecture, or teach.
If you go to grad school, you get indoctrinated very quickly to the idea that teaching is easy, you should do it with your eyes closed, but you should put in the minimal amount of work required before doing something that really matters, like publishing papers. I think it's hard to find people that can teach because those people wash out of grad school very early when they find out that their attempts at teaching well will not be rewarded.
This is not true if you look at the tiny liberal arts colleges, though. They actually care about teaching. However, if you go to grad school, you go to an R1 school (because tiny liberal arts colleges can't afford grad students) and R1 professors think that becoming a liberal arts college professor is a shade of failure, so they will strongly discourage you from going down that path.