When I was at university, my institution was investing $millions in building various new building. A grumbled to my supervisor, who explained to me that this was important to attracting new students.
It's an unfortunate truth that decisions to attend a given university are often made based on an image in the student's (or their parents) head about what a university should look like, rather than things like academics.
I blame the "contest" started by the magazine US News and World Report, which started their college rating. This led to university execs aiming to raise their rating at the expense of education. Higher rankings meant higher bonuses for top employees - especially the president of the university. This race for ratings is why the cost of a university education has skyrocketed far faster than inflation.
I liked MIT's "building 20" cluster of wooden shacks, which were featured prominently in the east side of campus. It was said that, when an experiment needed more space, people would casually punch a hole in a wall.
https://en.wikipedia.org/wiki/Building_20
Building 20 was razed to build the Gehry-designed, donor-named Stata Center (incorporating a donor-named Gates "tower"). Breaking with MIT tradition of calling buildings by number, IME most people call it by donor name. (Gehry's reflective surfaces could blind biologists in building 68 across the courtyard, at least before the donor-named Koch building was installed nearby.) Stata has its merits, but I think grad students who punched a hole in the wall would be in trouble.
https://en.wikipedia.org/wiki/Stata_Center