Agreed, the issues definitely go beyond just HECS funding, and the overemphasis on churning out international students with degrees is a problem. I think there is still a place for some sort of University-like formal higher education, at least in some subject areas, but it needs to operate very differently to the way it does now.
I actually do sometimes wonder whether I really got any value out of my own degree or if my career path would have been pretty much the same without it. I didn’t start my career through a graduate program and none of the jobs I’ve had specifically needed a degree so maybe I could have been further ahead without it. On the other hand I probably did pick up some useful skills and knowledge from it that have helped me..