And that perspective isn't entirely wrong--for some people that's all they will ever be. It's just that they do more than that.
Universities exist to provide the resources academic researchers need to work. Whether they are studying physics, sociology, or creative writing. The buildings, the meeting spaces, the people they gather who share interests, they people with cross-cutting or even opposing interests are also a resource.
Universities exist to provide the resources students need to learn skills that are difficult to obtain otherwise. It's not practical for most people to be self taught operators of gas chromatography systems, confocal microscopes, or research reactors. The physical stuff isn't the only thing. Having a collection of experts on different topics clustered together means that as a student you have access to a massive resource if you are smart enough to engage with it. These are all people who can teach you, guide you, and make introductions for you.
Of course, I am kind of dumb and didn't really realize this stuff until after I graduated and was navigating the world as an adult. Relationships I built in college helped me land several jobs early in my career. I don't think my bachelor's degree did anything for me beyond my first job. People rapidly stopped asking about it.
The writer is quite elegant in her description of how LLMs are corrosive to the social aspect of university.