In this recent article in The Australian, Jim Barber (Vice Chancellor of UNE) suggests that universities are quickly becoming irrelevant, particularly those that don't understand that there is now no reason for students to attend traditional "lectures".
As I have said previously, universities have to find new ways to deliver value to students, delivering an experience that they can't obtain from Wikipedia. As Jim Barber argues, we should be building more places to hang out (informal learning spaces), as opposed to big empty lecture theatres.