They're still the best and only organic ex. of "a community of people working on different things but sharing resources" due to loose coupling between labs, depts, and institutes.
WeWorks don't have this, they just share a coffee machine.
No, the thing is misuse of resources, because of the nexus that exists between individuals at administrative levels and those who can influence.
Giving degrees even when one hasn't acquired necessary skills to obtain it in academic period.
Favored recruitment of low quality
Interesting question, but it depends on institution. I had an eye opening experience in NYU where the openness between labs allowed exchange of ideas and bottom up projects. However the current system of career advancement might discourage academic involvement in society