Earlier quoted context omitted.
Your adviser was right though. If there was an infinite amount of money then they'd have lecturers who are dedicated to lecturing. But there is never enough money so...what options are there but to do the things that will bring more in so that your role/group/department/university survives. I've seen it myself...groups whither and disappear due to lack of funds.
You're right, of course, there's no place for teachers in the academy, except as members of that most degraded and despised class, contingent faculty. But I think this is a serious problem. Not to put too fine a point on it, but many recipients of engineering degrees being turned out by our well-respected institutions of higher learning can't engineer their way out of a wet paper bag. I worked with people who didn't…
I'm not sure how much can be done at the teaching level, but like you, it's something I'd also like to help correct.