I agree with what some have already said, and in part with the telegraph article: courses like learning to bake and design bread don't have a place at university. Young people are being pressured into going to 'university' when their time would be far better spent in the workplace or undertaking apprenticeships. As lucho22 has already stated, this would be more economically viable for both the student and the taxpayer.
Some courses at lower-end institutions amount to nothing less than robbery. I have a friend studying some sort of engineering at Coventry, an institution that let him in with two E's at A level, and he openly admits the course is rubbish. I have a friend studying media at Southampton Solent. Why did he go there? Because he wanted to doss for three years and didn't know what to do when he left school. He says the course is uninspiring and not at all challenging. Another of my friends, funnily enough, is at Sunderland - the institution Estelle Morris is pro-vice chancellor of. He is studying media and went there because it would accept him with a D and an E and so that 'he could put off working for 3 years; afterall, the student loan is basically free money!'
On the other hand, I have friends studying law at Oxbridge, biology at Durham etc. These people are passionate about their subjects and will succeed. It's no coincidence that those with lower drive and academic ability ended up at half-rate institutions. With the way the system is going many young people today see university as simply something to fill a gap for three years; they don't want to work yet and can study something 'easy and fun'.
Now, please don't think I'm saying any university outside the 'top 10' or 'top 20' is a waste of time. Nor am i saying that people that attend lower end institutions just want to doss for three years. I am fully aware that many lower rated institutions offer excellent courses - I have a friend doing events management at Bournemouth, for example, and she tells me that it's brilliant for that. It's just that there are too many low end establishments admitting students onto courses that won't benefit them as much as if they'd taken 3 years in the workplace or an alternative route.
I am well aware that removing these sorts of courses will create an academically and socially elitist university system, but with suitable alternatives in place for those that really would not benefit from a university education I believe it would be preferable to the current situation. I am all for more working class people going to university - i am myself - but only for the right reasons.