My perception is that we are too heavily focused on skills and training, without enough focus on job creation. If skills development is not tied directly to jobs, all we get is a better-educated unemployed force. The focus on FET colleges will not make any difference if we don't first of all look at the skills actually required and encourage the employment of those skills.
As for varsity education, it may not come with a practical component but at least they are (usually) taught and encouraged to think. It doesn't always work of course, but that's the component I prefer to employ.