I started on my degree 11 years ago so things may have changed since "dumbing down" began. For what it's worth the degree in question was a BEng in Engineering Geology and Goetechnics. It was so horrible that I have since done my best to get as far away from rocks as possible! Lectures 9-5 most days including Saturdays and half of your holidays spent on field trips.
Academically I would say that the degree was harder in both breadth and depth of knowledge required.
However, with the ATPL examinations, the shear volume of material to be learnt (although not as technically difficult) in the allowed time frame resulted in a similar percieved difficulty. Or maybe I just wanted it more?
Pilot training should recieve funding, in an ideal world this should come from the employers, the airlines, as has already been said. But until demand outstrips surply for a prolonged period, which has yet to happen, this seems as unlikely as ever. If it does, I can see alot more companies along the lines of the ATP academy springing up.