Is derecognition the way for IIT's and IIM's

A lot of printed space ,a lot of airtime and a whole lot of bytes have been devoted to criticize the Goverment for its decision to impose a fresh quota regime in central universities and the IIT's and IIM's .While the whole idea is unwelcome ,the inclusion of above mentioned instituions has further villified the decision makers in question.
The higher education system has universally been objurgated for its lack of quality and disconnect with real world .Employers have to invest massive amounts of money and resources to train these products of
IIT's and IIM's are the perhaps the only symbols of defiance of the monolithic cess pool that higher education in India is .Their reputation has been assidiously built over the decades ,churning out technocrats who have led world class organizations .What makes these institutions the very best is the quality of students that have walked in their hallowed portals.These have made the best of the country even better by providing a them with the resources ,the guidance,the platform and the atmosphere to excel.
Perhaps the government doesn't realize this fact and presumes these institutes have some sort of philosphers stone which is judiciously rubbed on the students so as to make them golden .
Mr.Arjun Singh in case you didn't know,the seed of a guava won't start producing grapes just because you plant it in a vineyard.
The only way to save these 'temples of modern India ' is to free them from the clutches of the government.
Time in and time out the government has thrown a spanner in the workings of these institutions,whether it be the decision to hike the fees or open international campuses .The government has ensured that it shows the adminstration of these institutions their place.
I wonder why the IIT's and IIM's do not pursue full blown autonomy .Surely they have the capability to run their business mighty well without the goverment's incessant interference .An infant needs to bottlefed and kept in a cradle ,not a mature adult.Shouldn't the government just let go and focus on providing primary and secondary education ?
I am sure that these institutions can survive without the grants the government
provides them with by hiking the fees and consulting charges.No matter how high the fees would be,soliciting loans would never be a problem.and with the kind of salaries their graduates command ,even the repayment is not an issue.
FYI ISB (Indian School of Business ,Hyderabad) which was recently in the news for President Bush's visit to its campus and the crore plus salaries is not recognized by the UGC or AICTE or xyz .It is hardly a five year old institution and has captured the imagination of the public and the corporates alike .Non affiliation and non recognition has actually ensured that the goverment has no business in its affairs,whether it be imposition of quotas or hiking of fees.
Should't the IIT's and IIM's be following an identical model,with nearly four decades of credibility in their favor??