UCL have the power to award their own degrees, as do LSE I think, or they are making steps towards doing that. Honestly I think ICL withdrawing from UoL will get the ball rolling and incite UCL and LSE to follow suit, which I think will happend eventually (within 5 years).
I dont agree with a collegiate system, at Oxbridge, that has taken years to develop and thrive and I believe it will just create segregation if it happend at ICL.
I agree with edders about reducing intake and raising standards and interviews (200+ for physics is a lot if you ask me). Also I would get rid of or reduce the intake of the less popular (lower standard) courses like Applied Business management, even though this has been removed.
UCL ICL merger would have been interesting and I do think that ICL would have become better off on that. They would have swallowed the comparable depts and secured so much more funding for themselves. ICL LSE merger would be quite interesting two, but there would have been no cost cutting and the campuses are far apart, and I dont see the point, unless ICL had an input in some of LSE degrees (ie Mathematics taught by ICL for the LSE economics degrees so on, or if LSE and ICL undergrad had to take Science and Social Sciences options respectively.
I think/believe ICL do have some money. They raise a lot of money from their spin off countries, and I have heard that it is the closest to a corporate entity than any other uni in the UK. I think their trying to follow in the US unis footsteps.