Certainly I do not take the view that only the hardest STEM subjects should be studied. There is obvious value in the arts and social sciences, and that value is academic. The reason that universities exist is not to produce people with skills to perform jobs (though this is a side effect). At least, you would struggle to find any good professor who thought that the purpose of studying a maths degree - about as hard STEM as you can get - was to go into finance/do something non-academic. When students study physics, they do not do so because studying physics makes one more employable (though it does), they do so because learning for learnings sake is innately valuable to us as human beings.
This then, is why there are plenty on subjects that are not STEM that are worth studying. It is worth studying and researching music or literature, even though those studies do not translate over into the real world, because they are intellectually stimulating and interesting, and they fulfil the fundamental human desire to observe, analyse, understand and create. These are the reasons that academia and higher education should exist.
With that in mind, there is a good argument against certain subjects being studied at universities. Take for example photography. The issue with a photography degree is that the field is not nearly large enough to justify being a subject. The actual academic work is a strict subset of the work done in an art degree, as is the artistic element of the practical work. The technical element on the other hand is not what universities should be for. I.e. the list of grand and central-to-the-human-condition goals that universities are meant to fill which I compiled above does not include teaching students how to operate a camera.
In terms of finance, I am of the mind that a government should fund its citizens higher education for the same reason it funds schooling, because as human beings we should have the right to engage deeply and meaningfully with ideas, which is what the purpose of universities is.
So in short, I think there are good arguments for removing the study of certain subjects from universities, and for the government providing at least the current level of loans to students, on the grounds that academic study is integral to what it means to be human.