Today they are bloated with administration that is nothing but a cost center, meanwhile they eliminate tenured professorships and have classes taught by tenuous adjunct faculty who are paid poverty wages. Universities could easily right the ship by cutting the administration and focusing on teaching and research, but the people who need to make the decision to do that are the ones who would be cut.
In my experience, the large influx of foreign students are typically at the masters level. MS classes are typically (not always lol!) more advanced than undergraduate classes. So, you need more qualified instructors, such as your tenured/tenure track faculty to teach them. When you take T/TT faculty out of undergraduate classes and replace them with teaching faculty, you lose a lot. (Let me know if you need what's lost to be spelled out.)
Instead of journals getting revenue from subscribers, they charge authors an “Article Processing Charge” (APC) which for ACM is $1450 in 2026 and expected to go up. Authors from lower-middle income countries get a discount. [1]
Authors are often associated with institutions (e.g. universities) who can cover the APC on behalf of the author through a deal with the journal. For the institution, now instead of paying the subscriber fee and publishing for free, they pay a publishing fee and everyone reads for free.
1. https://authors.acm.org/open-access