[VSlug]

I couldn't agree more. I attended a small liberal arts college and feel that I learned a lot from dedicated professors who did little, if any, research. And then I was a graduate student at a university where teaching was considered a chore by professors who wanted to spend their time in the laboratory. At the very least, there should be a greater demarcation between undergraduate professors (who should be teachers) and graduate professors (who should be researchers). As to your business model question, one start would be to make research more grant-contingent. This already happens in hard sciences, but could be applied more to humanities as well.