I believe in the end this practice will drive great ideas out of the Universities. Personally, I would rather work on developing an idea at home rather than pursue it though a graduate degree for this very reason.

A few years ago ( back in 2000 ) the University of Idaho's 'wonderful' administration attempted to impose differential fees on their Engineering students. At the time I, and many other students, fought this idea. The U of I is a public institution of the state, as such the residents of the state (and their children) should not have their education choices limited due to issues of fees.

Google for 'university of idaho differntial fees' and several archive links are available covering the debate both on campus and within the state board of education.