There have always been various forms of "accommodation" at universities.  See my earlier post about one method of obtaining an A.

However, the phenomenon about which Ms. Wente writes seems to have begun in earnest about the same time, 10-15 years ago, when former community colleges began a wave of self-designating as "universities", even though their extension departments were still offering courses in such things as traffic control flag person and hairdressing.  

That dilution inevitably brought about reduced standards and expectations, together with competition for enrollments to boost funding.