I believe that Thiel is saying that the current structure of higher education, in tiers of increasing eliteness, bundled with a living and partying arrangement over an essentially-fixed time period, is bad, not that the course material or content is bad. I'm a CS student at a very prestigious university in the UK, and I'm not going to claim that I would have learned all of the same things that I have learned if I had self-taught, but I totally didn't need the whole living arrangement thing, and I'm not really sure why I had to fight with thousands of other students for my place, when most of the teaching easily parallelises if you just record the lectures and open up the course notes.
