From a recent essay by John Coetzee [HT Joshua Miller]:
The response of the political class to the university's claim to a special status in relation to the polity has been crude but effectual: if the university, which, when the chips are down, is simply one among many players competing for public funds, really believes in the lofty ideals it proclaims, then it must show it is prepared to starve for its beliefs. I know of no case in which a university has taken up the challenge.
The fact is that the record of universities, over the past 30 years, in defending themselves against pressure from the state has not been a proud one. Resistance was weak and ill organised; routed, the professors beat a retreat to their dugouts, from where they have done little besides launching the intermittent satirical barb against the managerial newspeak they are perforce having to acquire....
But in the end, I believe, you will have to make a stand. You will have to say: we need free enquiry because freedom of thought is good in itself. We need institutions where teachers and students can pursue unconstrained the life of the mind because such institutions are, in ways that are difficult to pin down, good for all of us: good for the individual and good for society.
In institutions of higher learning in Poland, in the bad old days, if on ideological grounds you were not permitted to teach real philosophy, you let it be known that you would be running a philosophy seminar in your living room, outside office hours, outside the institution. In that way the study of philosophy was kept alive. It may be something along the same lines will be needed to keep humanistic studies alive in a world in which universities have redefined themselves out of existence.
If Coetzee is right then outside the (non-trivial) enclave of rich, private universities, the Humanities are doomed within the modern university.