The reality is many universities have gotten out of the game of offering quality education. They still offer education, but they are largely indifferent to the quality of the education, so adjuncts will do just as well as any professor.
Instead, universities have spent enormous money and effort to protect and emphasize the college/university "experience." Thus you get an enormous amount of handholding and bureaucratization in higher-ed because they're functioning like giant weird resorts with health services, legal services, financial services, extra curricular services, and a whole lot of other crap with education as only the implied "reason" the students are there.
> But no school is judged on their regulatory compliance.
To a certain degree this is untrue. Student complaints and/or payee (parent) complaints for things like Title IX violations, as one example, mean a potential loss in federal/state funding and negative press. So institutions seek to bureaucratize the whole process from the tip of the root to the highest leaf. Higher-ed in the US has become a kind of ride into adulthood.
