I had a conversation with Prof. Anup Malani (University of Chicago Law School) about this at a conference, and asked him if he could write up his thoughts on the subject; he kindly agreed, so I'm passing them along:

A common view among those who worry about academic freedom (which includes this author) is that what we need is more universities to follow the University of Chicago's lead and adopt the so-called "Chicago Principles." This approach is roughly the equivalent of a decision by schools functionally to enforce the First Amendment on campus. This policy reform practically includes both not censoring viewpoints and prohibiting people from shouting down and thus shutting out others' speech.

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The conventional (economic) view of the university is that it produces a basket of goods: specific human capital (in your major), general human capital (learning to learn), signaling quality (from the admission itself), a network (your colleagues in your class). But omitted in common accounts is that a university also produces a "culture" that materially impacts life on campus and amongst graduates after graduation.

Read more at The Volokh Conspiracy