There are a number of problems in academia. I'll throw out a few, just as discussion points.
* Pay disparity between professor and industry; if you optimize for money, you go more industry.
* Papers are a key metric of success, not actual results (Which are hard to quantify)
* Defunding of public universities
* Rising cost of education vs. inflation or cost of living
* Students loans leaving graduates (and non-graduates) in heinous amounts of debt. It's very hard to pay your way through school now with a part-time low-wage job.
* Worsening average quality of incoming students causes higher burden on instructors and institutions
* Increasing amount of specialization; liberal arts majors can be very smart and have broad understanding, but get shafted because paying for on-the-job training is expensive.
* Training vs. education wars.
* Entitlement issues: "I paid for this course, I should get an A".
As usual, the cream is at the top, and can bring in enough money to keep things going, and can select on more than the ability to pay tuition.