Even if it's including all support staff that seems like kind of an insane ratio to me.
Um, lots.
Very much not niche, not tiny firms catering to the even more stupidly wealthy than any individual human: customers aren’t always natural persons.
It’s the faculty that are replaceable. Students go to a university because they like the administration. It’s like a resort.
(The faculty may be adding value by being in academia at all, but it doesn’t matter for students which particular ones you meet. It could if you wanted to enter academia yourself, but you definitely don’t want to do that.)