@Zinhead, well UMich and ND are also, overall, on a higher tier than UIUC, so a stronger alumni network isn’t really surprising. Plus, yes, they cultivate their alums (and are football powerhouses). As an aside, with state support of UMich amounting to a single-digit percentage of their budget, UMich in many ways behaves like a private now and was one of the first publics that looked to seriously grow their endowment through fundraising.
BTW, evidently, UIUC offers just as many in-state kids as they always have (and the undergraduate student body at UIUC has grown), so technically, they’ll not cutting opportunity to IL kids to enroll more Internationals. In-staters are turning UIUC down in greater numbers, however.
I find the contrasting in-state attitude to PSU and UIUC to be very interesting. Both are relatively high cost to in-staters and offer little merit money. UIUC has more high-ranked programs. However, PSU have more kids who love it and a stronger alumni base. Evidently, having a football powerhouse and picturesque campus does wonders. Also, PA cut spending to PSU long ago, so PSU has had to start acting more like a (gigantic) private and curry favor with alums & prospies decades ago, while UIUC is undergoing state budget cuts now.
Ironically, cutting state funding to UIUC may make the school appear more attractive, as UIUC would have to spend more on marketing and making the college experience more enjoyable (and harder to get in to).
BTW, some would say that UIUC’s direct admit in to majors is a positive, not a drawback. For instance, most students in Kelley aren’t admitted straight out of HS. Instead, you have to apply after first enrolling at IU. Yet one B- is enough to sink your chances at getting in to Kelley. Do you prefer that type of pressure? What do you do if you want to go to undergrad b-school, are at IU, but failed to get in to Kelley?
Finally, yes, it certainly looks like UIUC does not like to deny in-state kids, preferring to allow them to decide whether to take a 2nd-choice major at UIUC or go elsewhere, leading to a low yield and high acceptance rate. Would you prefer that UIUC start to play the acceptance rate game? They could easily increase apps by joining the Common App and straight-out denying in-state kids to protect their yield. I’m not sure why you think that would be beneficial to IL kids, though.