The fundamental question is: do we want admissions based on merit (or not)? Saying "Yes" and then carving out an exception for the wealthy is dishonest (IMO); if the answer is "No, admission is not on merit" then we need to talk about what other considerations would be fair game.

Also, implicit in your argument is that universities getting more money is always a good thing - I take umbrage at that prior as universities should not be driven by the desire for perpetual capital growth.