Doesn't "used to be" imply that Notre Dame is no longer the place he describes.
"...hard-working, ambitious people without all the advantages could go, excel and make more of themselves."
Whom is he talking about? Administrators? Quite a stretch, don't you think, to say that he's talking about administrators making "more of themselves". I think the simpler explanation is that he's talking about students.
"Now it is to a large extent a destination spot for entitled people who have had things handed to them."
Yes, entitled and haven't worked for what they've gotten. Those who get to Notre Dame aren't seeking to excel and better themselves. We've reached our destination.
"Good kids, generally, but not of the sort that built the place and defined its ethos."
I'm supposed to believe that he's referring to the administration as "good kids"? Come on. It's simpler, yes, to reason that he's referring to students.