My own feeling is that it was a mistake to turn the old Colleges of Higher Education and Polytechnics into universities. I know why it was done. The idea was to give vocational education parity of esteem with universities.
I reject absolutely that Oxbridge degrees are necessarily superior to a degree from anywhere else, but there is no doubt that they are still seen as prestigious. (Look at our cabinet ministers!) It really depends what skills are required. For example, I wouldn't trust an Oxford classicist to understand the details of the sea and tides, knowledge of which is needed to run a surf school. I wouldn't recommend Oxbridge to an aspiring engineer or doctor either.
The Colleges of Education and polytechnics often offered a very valuable route for mid-career people, who wanted/needed a more theoretical grounding to progress. The UK suffered for far too long from amateur time-servers, who thought they knew it all.
The UK really needs to look at a country such as Germany, where advanced vocational education has arguably been one of the main reason's for the country's industrial success.