I don't think there is any doubt really. Tom Sowell argues this is the case, and I bet Nick could attest to it as well.
However, I don't know how harmful it is. This dovetails with one of Allan Bloom's arguments as well. I think it has been destructive of the core purpose of universities just as politicization of education has. College is a place to spend a few fun years, get a degree, and hopefully a job rather than a detached center of learning, somewhat independent and separate from the commerical and political world. It is now higher learning only in the sense that it is a higher level than high school not in the sense that the learning somehow transcends practicality.
Any thoughts?