IMO, your assessment is incorrect. The proliferation of degrees does not necessarily increase acceptance. If anything, it makes the more "elite" degrees more valuable. We have a model of this with degree inflation in the U.S. in the past century. When few people graduated from high school, a high school diploma was a ticket to a comfortable living. Soon, the proliferation of high school graduates made the acquisition of a bachelor's degree required. Now we are seeing a shift toward Master's degrees. I hope this stops soon because I really don't want to pursue a PhD just to work a job that doesn't really require that level of knowledge. The fact of the matter is that there will always be a place for elite institutions. No for-profit will ever be viewed as being equivalent to an Ivy League university. When everyone has a doctorate, then prestige of the institution plays a greater role (plus publications, etc.).