Here's a weird idea. Bundle materials into tuition expenses. It incentivizes the right people with the power and market participation to optimize for the right thing. Presumably, teachers and departments would have to justify costs from a materials budget to an admin forcing real downward pressure on the textbook market. The current state of textbooks acts like a surprise fee(dark pattern) where you purchase a produc…
That the problem continues isn't because the right tweak hasn't been tried but because university administrators allow this situation. The reason they allow the situation is both that they some material interest in it but also because the administrators and funders of the university operate with an ideology that sees markets inherently as a solution to problems.
The concept of using endless debt to pay an escalating price for privatized knowledge is the epitome of efficient use of resources in this view. And your idea of rebundling the costs certainly would change the regime if it somehow got tried.