alt Hacker NewsThe problem is the vicious feedback nowadays of online student evaluations of professors. Professors that are rigorous get complaints and low rankings, kids don't sign up for their sections etc. Kids (parents) pay the administration and the administration wants to keep the customer happy. The only real answer are standardized exams (such as licensure exams) which are beyond parent pocketbook capture.
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Tenure protects professors against students' complaints (often for the better, sometimes for the worse). Also, the administration already knows that students complain about professors who are tough, and don't typically pay heed to those complaints. Parents don't really have recourse either: what are they going to do, send their kid to Podunk State instead?
Or like Europe. You don't pay tuition, but if you slack off, and don't progress properly, you only have a limited number of exam retries and limited number of funded semesters. If you fail, you're out, choose another profession. You're not a customer, you're someone who is trying to prove themselves and get certified by experts on their knowledge. The "customer" of the university is whoever will glance at the degree paper and tries to ascertain the skill/knowledge level of the outgoing student. They have to give a good signal there. The reason this doesn't work in the US, is because they want mediocre children of rich parents to be pushed through, because college is a networking and social class-based finishing school, not a place for acquiring knowledge.
(Also, there should be electives, but the rigorous backbone of a degree should be mandatory, so "students won't choose this course" doesn't come up.)