I know people don't want to read this, and there are many sceptics who will offer the contrary view, but I think the answer to the question in the title is "yes". This article makes the case, and I want to pull out two quotes. First: "As educators, we strive to create opportunities for as many students as possible to discover and develop their talents, and to use those talents to make a difference in the world. By that measure, our current model falls short." And second, "Soon, residential colleges may experience a decline similar to that of live theaters after the advent of movies and broadcast television. Broadway and local playhouses still exist, but they are now considered exclusive and expensive forms of entertainment, nowhere near the cultural force they once were."
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