I applaud Mr. Coward for trying to stand up to the institution that is motivated by money and not academic performance. An institution that has blinded themselves to what education is supposed to be all about.
Mr. Coward - if you are reading this: You can't succeed in your effort alone. If students like you as much as you say they do, you must rally them to your cause. Get the student council involved. You must get as many of these students and their parents involved and hopefully several of these parents hold political power or donate large sums of money to the institution. If you have the hard facts to support your argument, you must get the media involved as well. Trust me on this - you must make this bigger then it is and begin to get the higher ups concerned about not only money, but their reputation. If you do not get the students involved, you will lose.
I was a graduate student at a large, respected University, and taught every semester for years. I had a great reputation among the majors who sought me out for their lab TA. However, when freshmen started coming in less and less prepared but with increased feelings of entitlement and the thought that there is no need to work hard for a good grade, my test means for my non majors course started declining. The institution wanted me to dumb my non majors course down and I resisted telling them that there are more students coming into this University that just don't bother working hard and expect to get a passing grade anyway. My means were fine years before and if anything, my teaching had gotten better and my tests had gotten slightly easier. I resisted, but I knew that I would never be able to survive in that environment without tenure. So, I changed my career path.
I would have been a great teacher and I do miss teaching. But the system is currently designed to stamp out those who do not conform no matter how successful they are with their students.