Yes. It's not unreasonable to cite this as an example of capitalism functioning normally. Competition produces extra money for institutions that are covering their core missions (one hopes) and also virtue signaling that they're super successful and wealthy.
You could call it greed, or simple self-interest: if the administrators have correctly perceived that the insanely wealthy will only make gifts to institutions plated in gold with peacock feathers, then their personal feelings about gold and peacock feathers are irrelevant: they can seduce the wealthy, or not, and they can win the gifts, or not.
Definitely worth study, and definitely an interesting study in perverse incentives. After a point, nothing is valued BUT gold and peacock feathers because they're so inextricably a part of doing business. And it's certainly not aimed at the students. It's aimed at the impossibly wealthy, who wish their gifts to be associated with institutions that are absurdly swanky for the students. What the students want doesn't have anything to do with it, it's purely for donors.