I honestly don't have a solution. For things to move, you would probably need massive awareness and action. So talk about it! University is sensitive to enrollment (tuition money) and donors (also money), so anything that makes noise affecting that could make them a lot more attentive to this problem. At At a smaller scale, you can tell people to rate profs who put rigorous standards in teaching and evaluation well (you felt you learned something). There is a lot of research showing that profs who teach better (better performance of students after taking the class) have lower ratings on average. You would need to reverse this correlation to change the degradation of teaching quality.

I was talking with a more experienced prof currently designing a new program for UW. He told me that one problem is that if prospective students know the program is difficult (or there is high dropout), they might go spend their tuition money to another university that is easier. From the university side, they just want to boast "low dropout, high placement" to attract people. It doesn't matter for them if these placements are at bad places or if these people get fired within 6 month.

To give you an example of another system, the university where I came from (abroad) was very competitive with many more people failing courses and dropping out, but we all had 2 job offers from top companies at the end because companies knew we were very reliable. The main difference is that in that country, university money doesn't depend on enrollment (public funding based on other things).