The increase in administrative overhead and such is more a case of the modern customer. Comparing private non profit universities and these BS places is stretching too far.
On the customers - the ability to attract modern students rests more on amenities like dining halls and dorms, not on the academics. Sad, but ultimately true.
This kind of competition is only possible due to federal aid. There is a certain amount of non-educational amenities being provided, but it's trivial to find articles like these
That document the growth in non-teaching administrative and professional staff at universities. Staff that grow at more than double the rates of enrollment and teaching positions.
On the customers - the ability to attract modern students rests more on amenities like dining halls and dorms, not on the academics. Sad, but ultimately true.