In some ways this is a clash of two different cultures in higher education. On one side there's this grasping cunt, trying to tap into the ethos you describe. Education as product, the market, student satisfaction - something that ignores the fact that students don't just receive a product, they are the product. But if the reporting of this is correct, Oxford also displayed the other older, elitist university culture, that elevates research over teaching, thinks teaching will look after itself etc. The reports I read said something like 5 of the staff who might have taught him had chosen to take sabbaticals then and he ended up with the stressed bloke who didn't deliver.
Have to be careful here: I'm not claiming he'd have got a first otherwise (and more to the point I don't give a flying fuck whether he got a first). I'm also not saying university managers should also be able to 'deploy' staff, which increasingly is exactly what they do. Just that there was this older tweedy caste of gentleman scholars whose status as semi-independent professionals never saw meeting the needs of students as a priority. In some ways, it's the about the failure to develop any kind of solidarity within HE amongst different groups of workers and between staff and students. The absence of that opened the door to all the quasi consumerist shite you describe.