No, universities need funding. To increase your chance on funding, you need to have a measurable output. Like number of papers for the research part, or percentage of first-semester students that will pass the final exam. At least in the Netherlands and Germany, and depending on the study, classes with required attendance exist. With the change to Bachelor/Master, comparison to other universities got easier, and many curricula have been adapted to ensure students will pass (testing if homework has been done, etc). At the same time, the high schools in the Netherlands were restructured to give the pupils more responsibility. That only worked by scrapping part of the natural sciences, which are now taught in (obligatory?) preparation classes before your semester starts.
Basically, it's a mess. Personally, I'd think that universities are for developing an academic way of thought. But since that can't be quantified, funding won't depend on it, and it won't come in the equation.
He who has but four and spends five has no need for a wallet.