USC is known to be an extremely expensive school, but to call it an elite armed fortress that's completely disconnected with its surroundings and full of spoiled children is a little unfair.
I went to USC, because 1. I thankfully got in and 2. they gave me enough grants and financial aid to make my tuition there cheaper than at the UC's. I come from a family that doesn't quality for financial aid at public schools but doesn't make enough to make college affordable. I'm extremely grateful that a private school like USC gives out so much financial aid. I still had to take out student loans to cover the non-covered part, but still, it was cheaper than the UC's. Over half of USC students receive some kind of financial aid as well.
And USC isn't as isolated from the community as you'd think. Especially after the LA Riots, the school has done an immense amount of community work. USC Family of Schools is just one example. The recent scandal with the black student party/LAPD, and recent gentrification accusations with the University Village redevelopment may portray the school in a negative light, but I wouldn't judge a school based on these events.
I agree with a lot of your points but on the other hand, a school like USC provides the network and financial support that a new program can really flourish on. Yes I'm a little biased because I am a Trojan, but to keep on portraying the school as the "University of Spoiled Children" is unwarranted and annoying.