British universities have external readers -- academics from other universities -- who grade exams. [Correction: They review the exams and the grading.]

While I think that there is some validity to your point, I would like more data rather simply your opinion on the matter. I will now play devil's advocate.

As it stands, there are some outside players that regulate universities, mainly the regional associations that give colleges their accreditation. Standards for accreditation can be found here: http://www.ncahlc.org/Criteria-Eligibility-and-Candidacy/criteria-and-core-components.html

Apart from that, you say that part of the problem with "contemporary" universities, but what has changed in recent history with teaching that has suddenly brought universities on the downhill slope? Surely British and European universities that have been around far longer have the same such problems. The general idea of teacher/student relationship does not seem to have undergone significant changes since first instituted centuries ago, except perhaps now with the advent of online degrees/programs.

Beyond that, although surely there is some laziness on both the part of professors and students, Institutions do have a stake in making sure that students have the requisite knowledge that is expected of them. Universities many times work with employers to develop and implement curriculum. I work at a college currently that is implementing a healthcare degree that by and large is being done because of demand from area employers. These employers have had more than a small part in designing curriculum.

My personal area of expertise is accounting. If anyone wants to really be an accountant, a degree is not enough. Professional certifications are a requisite to do almost any accounting position. There are a multitude of accounting and business related organizations that offer certifications for various areas such as CPA, CMA, CFE, CIA and many more. Obviously these organizations are independent, and have a stake in upholding their standards. However, just like colleges, they also need to contend with the duality of maintaining standards but also the fact that the revenue for the organization comes in large part from dues, which increase the more people pass the exam.

In any organization like colleges there is going to be this inherent conflict. Even in an organization like OECD, why would a college pay to administer the exams, and probably also to qualify into the organization if it knew it was on the lower end? Thus it would benefit the OECD to not have a comparison system, but rather a criteria system that could give everyone high marks. I am not saying this is the case, I am saying that there is a pressure to do so. Ultimately, it is government that needs to require colleges into programs like this for the welfare of society, since the results will obviously be very bad for some of the participants. In the same way if your school loses accreditation, you will almost cease to exist as a higher education institution since it would disqualify the institution from receiving federal student loans and grant money.

I am not sure that trustworthiness has increased marginal utility. Think about ebay or Amazon, what is the difference between 99% positive and 100% positive. Or 97% positive or 100% positive. It would seem to me that with trustworthiness there is a tipping point, at which there is a huge spike in marginal utility, and all other increases don't really add much utility.

Generally in a wild population, "play" as young animals provides for the development of skills that are useful in adulthood, for instance cats that chase after everything as kittens will be better chasing after stuff like mice and rodents as adults. So once an animal has learned the skill, the only practice that is needed is the actual use of the skill.

Developmentally and psychologically, there is a condition called neoteny. This is where juvenile traits carry on into adulthood. This is seen in many cases of domestication and can be seen vary well in the domestication of silver foxes (http://en.wikipedia.org/wiki/Domesticated_silver_fox). Basically, some animals don't grow up but still become sexual viable mates, and sometimes this is evolutionarily better for survival. An extreme example of this is some salamanders that never transition from their larval stage to full grown adults (http://www.smithsonianmag.com/science-nature/the-salamanders-that-refuse-to-grow-up-64827289/?no-ist)

Many domesticated animals show some signs of neoteny, for instance in the foxes in order to fully domesticate them over a short span of time, neoteny traits were selected for.

Memory has definitely changed with the advent of technology. The ability to acquire information almost instantaneously has definitely reduced the need to remember more information. Also, I feel that social interaction has changed due to instantaneous communication. People expect others to instantly reply at any time and be available at all times. I know this is a cause of increased stress (http://scholarsarchive.jwu.edu/mba_student/12/) in the work place and a blurring of tradition work/home life boundaries.

I think the permanence of technological communication is also causing problems and changes in social skills. With the internet, anything that is posted can potentially be recovered at any point in the future. Never before has a form of communication been needed what would instantly delete itself (snapchat, privnote), at least in any other setting than a military one.

Technology particularly the internet and the multitude of television channels have made it easier and easier for extreme views to flourish. Even if you have views that would be considered immoral, wrong, or evil by most people it is easy enough to find groups and people who share your own ideas and views, as well as exclude anything that does not fit your view. Take the fact that certain news channels cater to certain ideological standpoints (fox news, Cnn, etc). No longer do companies need to cater to a middle point or showcase opposing views. The internet even changes based on your beliefs without you knowing (http://www.technologyreview.com/view/522111/how-to-burst-the-filter-bubble-that-protects-us-from-opposing-views/).

Technology has also greatly changed how we speak and talk, for instance I hear people saying "lol" or Oh-Em-Gee on serious news channels.