I also find that its is not even individuals in the institutions but somehow the collective that causes this. I do not think this is the end of such places though as this kind of stuff has happened before and I think people will always find and make new spaces to make their own culture, the destruction of such places seems almost inevitable as they gain more and more notoriety.
It's not like I have done a comprehensive study on this but at least here at umich there are still places to live that embrace weirdness, they are just not owned by the university. These days I think it is just too hard for a big university to let things fly for a multitude of reasons. I hope there will always be such places and it is sad to see such an iconic and important one go but I have faith that brilliant weirdos are very capable of finding space for themselves.