They did not mention research which is like the defining characteristic of a university. They seem to be condescendingly grouping research into the category of "status/prestige"
I was thinking of it from what an undergrad is trying to get out of college, graduate+ is an entirely different scene admittedly
Sure but I think it's an oversimplification to say that universities are unfocused and that this lack of focus is a problem because 1) the alternative already exists (smaller colleges are typically focused primarily on education with less research and less sports) 2) Universities doing a lot of things (including offering undergrads connections to research labs) is one of the main reasons that they are an attractive option relative to colleges.
I've heard similar arguments
1) if they were effective then we wouldnt see millions of students jumping into 60k a year private institutions
2) I don't buy this at all, I think students mostly select based on prestige. Academic rigor and research opportunities are mildly correlated to this but def not what high schoolers and their parents index on