Brass tacks, if an institution has an overwhelming political leaning toward faction X and works to undermine faction Y, is it really surprising that when Y gets into power it attempts to damage the institution? This is precisely why publicly funded institutions should maintain agnostic political posture.
What fantasy world do you live in? I want to be there, the world I'm everything granted to the public is always under constant attack and threatened to be destroyed and their proponents destroy and their benefactors humiliated.
Well there's absolutely the value in a lot of what those PI's teams are doing, what there is no longer is the political will to invest in those endeavors.
I think longer term this will mean we start to see a kind of "rise" of places like TUM and Tsinghua. (If that could even be seen as a "rise" at this point? Pretty sure most people already acknowledge their primacy.) At root, MIT was only MIT because of the teams it could collect together. If it can't do that anymore, I don't think people stop putting those teams together, those teams just stop being put together at MIT.
The search for fundamental clarity in humanity's great aporias will continue. Just a speedbump.