Useless degrees

Never said what was what? I'm guessing you mean my statement that you stated that more student = shittier education. In which case, I think you did? I think I actually quoted it. Put it in bold, even ;)

I never said that education shouldn't be for everyone.

I'm not sure how you measure merit in this case. I'm speaking of education for educations sake (academics). I am not saying that the higher level degree you have, the more capable you will be in any particular mundane money-making job (i.e., that is not a merit of higher education, although it may actually be a reality).
Show me an example of education for education's sake and we can discuss that further. It definitely does not exist in my university experience.

My point is that the pool of students thins as expectations increase.

Academic expectations yes, but the expectations of most BRITISH HE institutions are financial. primarily.

Higher expectations are likely to results in fewer students, assuming equality of capability when it comes to academics is a myth (which I'm pretty sure it is).

Again, education for education's sake is almost non existent in my experience.

So more students =/= shittier education? It's just a symptom of the "money is king" disease? In which case I agree completely. Although, not all symptoms are bad. I stand by my belief that people should have access to higher education if they want to give it a go.
Agreed. But at what cost to the british economy.