I agree with a lot of what you're saying but two points
Then there's the large salaries for big name talent who spend most of their time in research and writing, not in the classroom.
The "big name talent" usually is hired with the expectation of bringing in sufficient grant money to offset salary. I know that at the R1 (Research heavy) institutions, you do NOT get tenure these days if you do not bring in grant money amounts larger than your salary.
So, the big name talent is typically "free" in a sense. The advantage to having the big names is that even if they can't or don't teach, they typically take on graduate students or mentor students interested in their area of expertise.
Where I went to grad school, there was a brilliant Math professor that was a notoriously bad teacher. I took a class from him and learned almost nothing. However, if you worked with him his expertise in cryptology and modern encoding methods typically meant a six figure salary after graduation with one of the many firms that hired him as a consultant. For the University, he was worth his weight in gold as a professor.
IMHO, a better choice is two years in a good community college and a transfer to a 4 year school.
As a Professor, this is not my experience. You get some good kids from the Community College, but for a variety of reasons the majority are under prepared for actual college work. I've seen a whole lot more grade inflation at the community college level than anywhere else. My personal pet peeve is the students that are so numerically illiterate that they can barely add who fail College Algebra on campus semester after semester "magically" getting an A when they head out to the community college. Sure. I believe that. Especially when they come back for their next math course and do worse.