That 'technicality'(1) was the universities lack of effective checks on students right to be in the UK, which they had 6 months to fix.
I don't disagree that foreign students bring a lot to this country, and that the handling of this thing by the government was extremely poor (2), but you're conflating two different issues in order to make a point about the Daily Mail.
It seems like you're guilty of the same simplistic arguments.