Earlier quoted context omitted.
> "The telos of a knife is to cut, the telos of medicine is to heal, and the telos of a university is truth."
That sounds nice, but the de facto the purpose of a university is the furtherance of the intellectuals. The scientific method's purpose is to get closer to the truth. Some research does happen at universities, but academia in its current state is far from the ideal vessel for that. (Especially when it comes to softer sciences.)
Yes, and unavoidably so. That is why it is society's task to structure the universities in such a fashion that those goals align with society's goals.