Yes, to an extent, but as strange as it sounds, you can jeopardize your reputation with the companies that hire your graduates and still maintain your status as a prestigious research institution. I think the gamble GT is taking in this context is that this type of degree is terminal and largely self-directed, meaning the primary recipients will be self-educators who want it specifically for practical application. That means they are essentially just people who will learn and apply the material anyway, but they want the paper credentials to go with it. That reduces their risk.