Marvin Schick writes a very good article Kollel Only Schools decrying this new phenomenon.
He is absolutely right that this is a terrible thing and should be opposed. The fact is that the children of great men many times fail to live up to their illustrious parents while children of humble backgrounds become Gedolei Hador.
R' Wolbe whose passing was mourned by the whole Yeshiva world was one such person whose parents were not even frum. Would he even have a chance today to blossom into the Adam Gadol that he became?