The slide began decades ago, yes. I don't believe there's enough competition in the market for that to happen, really. Not whilst maintaining the breadth of academic options (which have already been whittled away by funding cuts). Universities will invest in the more popular degrees, and those with better cost-benefit outcomes. The slow death of the arts will continue.
And yes, some will market themselves as the elite universities, just like private schools do, and paying ten times as much for your degree as someone else will *mean* something. Bah humbug.