Integrating current technical advances into educational curriculum would alleviate the cost burden to the state and the student. Though it is aesthetic to have magnificent libraries on campus, the same quantity and quality of materials can be transferred to digital format for access, reducing the support cost for maintenance of physical libraries and physical books. Furthermore, many of the lectures can be recorded and digitized for students to view, while the professors can devote more time to research and small group discussions, having freed from daily hour-long lectures. In addition, even the small groups can be conducted via virtual meetings, freeing the student from the cost of living on campus.
More important is the purpose for the university system as conceptualized by the State. In the West, the purpose of university degree seems to have become a rite of passage into adulthood, rather than a certification for qualification into the state civil service and academia. As such, it seems that the standards of university education have degenerated to mediocrity. Furthermore, there seems to be an irrational faith placed upon mercantile companies and systems over state institutions in meeting the needs of a society. While I can understand your consideration of private universities as being an "option" for higher education, the results of for profit universities in the education sphere indicate that they offer little to no value to those who attend these places. In fact the for-profit universities disproportionately disadvantage the unqualified by enrolling them in their service and burdening them with enormous debts.
The social paradigm of university for every student need to be abandoned, if the society desires a competent civil service bureau and academic research with integrity. The constant lowering of standards to accommodate the unqualified results in worthless degrees and societal discontent.
RE: University trilemma: Fundamental issues