Agreed. To do this correctly would take long term planning on the scale of decades most likely; growing the faculty from within and providing the necesarry resources to develop them. But it is possible and the elite universities should be moving this way.
For Harvard and the rest of the Ivy League, "growing the faculty from within" really means "actually granting non-world famous people tenue." The Ivys are notorious for not granting tenure to people who come up through the ranks.
