The status quo for R1 institutions cannot last. I'm guessing there will be a barbell distribution of focus that splits the classical research/teaching fusion we currently enjoy. A few OOM of improvement in AI and we might see:
1. The research side goes industrial -- applied mathematicians producing enormous bodies of interdisciplinary work; physical science labs running in warehouses with heavy robotics and automated data collection and processing; economics and social science simulations at extreme scales...
2. Teaching is top-quality, high-touch, personalized-service, with courses becoming works-of-art and top professors being superhuman performers and guides.
In short, each end of the research-teaching axis taken to extremes.
There are hints of this divergence already. At Penn, the two top schools (by $$$ & prestige) are the medical school (no undergraduate teaching; lots of heavy lab-based research at scale), and the business school (almost all teaching, highly profitable, most research occurring in pockets like the stats department at wharton).
Ramp that split with AI improving 100-fold and more, and we will see a vast bimodal transformation that integrates the university more with industry (large scale research) and serves students better (extremely attentive teaching).