Gyms are a great example actually because tractors exist to do the economically useful work. You now optionally go to the gym to benefit from fake labor that used to be the side effect of useful work. The fake labor is now what colleges are trying to sell, and it's going to kill them.

Huh? The gym analogy doesn’t even make sense. People didn’t go to gyms when they were farming with oxen. Gyms are popular now precisely because tractors exist and you don’t need manual labor to farm anymore but people still need the physical exercise for their health. Society has adapted to the arrival of new life-changing technology. Our education system needs to adapt to new technology like AI too. You can probably uplevel a lot of courses and cover a lot more interesting topics than before and teach real application of things you learned aided by AI. Just like when I was doing a CS major 20 years ago, they didn’t spend too much time teaching me assembly programming beyond 1 or 2 lectures (they let me use a compiler for programming assignments!).