One does not have to wonder through the job rumor blogs to sense that universities are in trouble. All one needs to know is the cost of tuition at a top school. The spiraling costs are unsustainable as we have a few trends that will make it hard to continue--the equity crisis will make it hard for middle class folks to borrow money for their kids' education, the fiscal crisis will worsen the existing trend for states to reduce support for public institutions; and the drop in the stock market has shocked even those with the deepest of pockets (Harvard, Stanford).
So, what should we do? I have no clue, but this review covers two books that might be of interest.