The LMS (learning management system) sales decision in made by either the university administration or the office for information technology (using a checklist made by the administration). Neither of these groups have significant contact with the UX, so they don't really care about it. And the people that do have contact with the UX (teachers/students) all want different things, but have no way of having their concerns heard by the decision makers.
One of the very important checklists items is that there be thorough documentation provided on how to preform every course relevant action. This is so that the computer illiterate art teacher can be hander a 500 page manual and be told that he now has no excuse not to use the LMS. This has the side effect of making UX improvement basically impossible, because the improvement would likely break the manual (that no one actually uses) and thereby violate the terms of the sale contract.
From the perspective of a UX designer, working in this space has all of the downsides of designing for enterprise plus all of the downsides of designing for multiple user groups that all want different things. I really wish I had understood this when I started that project.
EDIT: I got an email asking if there are any ways to make this market work from a designers perspective. One that I've seen work quite well is to borrow the textbook business model: Ignore the administration, cater to faculty, fuck the students. TopHat [1] has had a lot of success with this model. Just like with text books, a teacher deicides to use a tool, and then forces all of the students to pay for it. Your 2 users personas are tech-savvy teachers and college students. Both of these groups are prepared for frequent UX tweaks and UX improvements are rewarded with more repeat business instead of indifference. So it's a big win from a designers perspective. The business model is borderline immoral, but the more I learn about the higher ed market, the more convinced I become that it is the least bad option for operating in a very broken system.