Yes. Name one main-stream science, engineering or medical degree from a decent university that was not helpful in getting a job 10, 20 or even 30 or more years ago.
A system which was once useful has basically become a ponzi scheme which serves no real purpose other than making colleges richer.
No it has not. What has happened though is that you now have a lot of for-profit private colleges setup to rip people off without providing them with a decent, or even useful, education. You also see established institutions suffering from government funding cutbacks adding some programs that prioritise profit over education. You are also starting to see institutes starting to prioritise social issues over education. However, the basic value proposition of university is still very much there it's just that, like many things in today's world, social and financial pressures are corrupting it in some instances.
Now all that knowledge is widely available to anyone on the Internet
That's a nice idea but I've yet to meet anyone with e.g. a good grasp of physics who achieved that by teaching themselves from the internet. I have met several people who _think_ they have a good grasp of physics from teaching themselves but invariably they have gone off the rails somewhere because it's easy to misunderstand or misread things when teaching yourself and you need to have someone challenging and correcting those misunderstandings when they occur as well as checking that you have reached certain standards. There are very good reasons why we do not let someone just read a lot of medical texts and then start practicing as a doctor.