A review of what looks to be an interesting book lamenting higher education's lack of concern for shaping moral beings. As much as I'm tempted to think that the thesis is right, I suspect that it's perhaps a bit off - universities are in the business of shaping souls, two different kinds of souls, in fact.
On one side, universities are busy trying to create "good citizens," by which they usually mean political progressives. Lots of schools now require as a matter of course "service learning" components, pushing students into "volunteer" work as a way of exposing them to the poorer parts of our society. Speech codes, conferences, orientation sessions, condemnation of "conservative" campus political activity, and so on are all designed to push students to the Left politically. (That such efforts often fail says more about competence than intention).
On the other side, universities are also busy trying to create productive workers. Universities seem almost obsessed these days with having big endowments and the way to get there is to have economically successful graduates. This dovetails nicely with the broadly held conception that college is all about getting "certified" for a lucrative career. (Go to most any website for a humanities department and almost inevitably you'll see a list of things one can "do" with that major). So universities inflate grades, ease requirements, beautify dorms (if you haven't seen renovated dorm life in the modern university, you'd be shocked to see how nicely many students now live), and do dozens of other things as a way of making sure that students "succeed" while they're there and can make it once they leave (and start receiving those solicitations for donations for the next capital campaign).
So the modern university isn't soulless at all - it's organized and oriented toward producing the postmodern man: lightly attached to "progressive" political causes and willing to do his part provided that it doesn't get too much in the way of the accumulation of riches and pleasures.