There are elements of truth within what he says which I strongly agree with (such as the diversity statement) - there's generally an extreme elitism inherent to such schools. Speaking for my own tastes, this is one of the factors which threw me off (along with a myriad of other things) applying overseas.
That said, I would take a more balanced approach towards everything else. Whilst there's probably more "grooming" going on at very elite institutions (partially because of the networking and so forth that takes place) than anywhere else, the stuff about academic curiousity and "intellectual journeys" isn't really an applicable critique. From what I gather (from friends at Oxford, Cambridge, Yale, Princeton, etc.), the rigour, breadth and depth available to students at such institutions far outstrips what you'd get in a regular course at virtually any other university. Yes, there's still an annoying "vocational" focus which seeps into many students' mentalities, but this is a problem with contemporary tertiary education as a whole, which is often far worse outside of these institutions: consider how many people (and I don't mean to be cynical, but...) studying Biomed at Melbourne are there for intellectual stimulation.
Speaking as another PhB student as well, Eriny, I would say that we're in a far likelier position than most students in Australian universities to judge this sort of phenomenon - after all, our degree is one of the few which encourages "free thinking", "academic curiousity", "intellectual journeys" and, above all else, a complete lack of vocational preoccupation (unless one wants to be an academic, lol). From experience, many, many people at ANU don't see their education in the same terms at all: yes, there's more socio-economic diversity and "freedom", but at the same time most people are still looking at careers (even if they're not certain which one) from the get-go. The interesting, unique people point is also a bit iffy. It's a very subjective value-judgement to begin with, but again, the elite institution students whom I know are just as likely to be brilliant, absolutely fascinating individuals as they are to appear institutionally-confined (kind of like every other university!).
Basically, I think a lot of the writer's critiques are more applicable to educational institutions as a whole than anything else. The most "liberal" thinker I know would rather go off and live in the wilderness (and write philosophy by himself) for a few years than attend university if he could do so. The philosopher Wittgenstein also went to university, found that it was "prostituting his mind" and did exactly the same thing. And personally speaking, I think I would have much more creative output if I wasn't stuck in an institution - no matter how laid-back Australia is, the pressure and mechanisation is still there, no matter what.