Well, I had a great time in my Ph.D program. My advisor was the very model of caring about students and integrity. I did good research which I was proud of (but which had very little impact since at the time I didn't know how to sell / position it well) I see the upsides of a functioning academia.
My cynicism doesn't come from a lack of understanding of the academy or the good parts of the academy. To the contrary; it's based on:
1) Seeing the upper levels of the academy (which are often incredibly corrupt, although this is well-hidden from students).
2) Seeing enough cases handled to know that cover-ups are much more common than resolutions.
3) Seeing many students get abused, and seeing the impact fake research has on the real world.
The lack of transparency makes academia look bad for perfectly good reason: there are huge amounts of money flowing into pockets corruptly at elite schools, entire academic careers build on academic fraud (which is /not/ the same as legal fraud), and there's enough rot in the system that it's hard to reform. The higher you go, the more rot there is.
Appearances to the contrary, students are university customers, and faculty are employees. The power legally rests with the administration and the board. The rot persists since the people benefiting set the rules. If I'm the president of a school, and a reform would put me in jail, or even make me lose my million dollar salary, why would I listen to student protests? Faculty protests carry a little more weight, but not enough, and enough faculty are corrupt themselves that you can't build a united front for reform.
Regarding peer review, the system is entirely bankrupt. There are no incentives to do a good job. Anecdotally, most reviewers skim papers; no one reads them, and certainly no one checks the math or replicates the results. Less anecdotally, when people have looked at data, it's no different from a die roll (NIPS did a proper evaluation of peer review).
Regarding grad student stipends, the basic deal is good on paper: freedom to pursue intellectual interests, quality mentorship, and a quality education with basic living expenses covered (on the taxpayer dollar). This seems like exactly the right thing. It breaks when universities break their side of the bargain, with the taxpayer dollars and charitable donations go to faculty clubs, yachts, and vacation homes, internal power dynamics forcing graduate students to be treated as cheap labor rather than as students, and competition forcing widespread academic fraud.