There’s an alternative system where this doesn’t happen: pay university professors less than a living wage.
You do that, and you’ll get professors who work in the industry (they have to) and who love teaching (why else would they teach).
I studied CS in country where public university is free and the state doesn’t fund it appropriately. Which obviously isn’t great, but I got amazing teachers with real world experience.
My son just finished CS in a country with paid and well funded university, and some of the professors were terrible teachers (I watched some of his remote classes during covid) and completely out of touch with the industry. His course on AI was all about Prolog. Not even a mention of neural networks, even while GPT3 was all the rage.