I agree with most everything except the higher education part. I've worked for a university for 12 years, and the role of IT is changing. Schools are now beginning to outsource their IT depts, and, just like the private sector, are now looking at IT as an enabler only.
The powers that be (boards of regents, vice provosts, bean counters, etc.) which have power over the university's direction are feeling pressure to 'step it up' so that smaller, private schools don't beat us to the punch. It's difficult for universities to be mobile, but it can (and is) being done. Keeping up with tech is hard, and schools who don't keep up will also flail in the wind.
So, your statement is true for everyone, really - even the public sector.
Beware of Programmers who carry screwdrivers. -- Leonard Brandwein