End result: substantially reduced student immigration along with native brain drain out of the US. Other countries reap the benefits of our best and brightest. New institutions fail to attract cutting-edge researchers and become ideology-driven vocational schools in the Soviet tradition.
Also, Marc Andreesen is a repugnant neoreactionary toady.
I personally dont think his extreme position is realistic. It would take too long. Foundations are too big, public schools pose a major challenge, and the public is mixed on the topic
I think a much more interesting idea is breaking the Council for Higher Education Accreditation monopoly on accreditation, and replacing it with some standard metrics.
Letting incumbent universities decide if new universities can exist causes the same problems as giving hospitals a veto over new competition, and education is ripe for disruption.
I would love to see accreditation to any program that produces students that could pass some standard tests or metrics.
Also, Marc Andreesen is a repugnant neoreactionary toady.