For example with Dentistry people are moving away from the Melbourne Graduate System to Bendigo which is an inferior university (albeit it requires a high 99+ score to get in) all just to add a few years to the 50 years they will be working. MADNESS!
I'm not sure if you can call LaTrobe Uni an "inferior university". It may not have been around for as long as UoM or Monash and it may not be as reputable overall, but it does have some pretty good courses, which makes it "superior" in some aspects.
Why does UniMelb have to get all Americanised...?
For the university itself - money and to a smaller extent advertising with all the attention it brings. For students, a more generalised degree that have the possibility of branching out into many things. It's good for those who have no clue what to do and what to try out different things.