Prices on Professorships

Putting a Price on Professorships:
Full article found here:
http://online.wsj.com/article/SB10001424052748703735804575536322093520994.html?mod=WSJ_hp_mostpop_read

The issues of teachers being graded and paid on performance has been on my brain lately.  There have been a few examples in the news lately that I've noticed.  Most notably Gov. Chris Christy of New Jersey going against the teachers union on the issue (http://online.wsj.com/article/SB10001424052702303550904575562712354459830.html?KEYWORDS=chris+christie).

Why is this such a big deal to people?  Why shouldn't teachers be graded on their performance and paid accordingly?  Why should education be seen as exempt from normal practices?

The original article of this post was in regard to professors "profitability" for their respective universities  Awesome idea if you ask me.  Why?  I'm not totally sure why I like the idea so much, other then it is more knowledge about the situation, and allows companies er colleges to make wise decisions.  Some oppose the idea though:
"This new emphasis has raised hackles in academia. Some professors express deep concern that the focus on serving student "customers" and delivering value to taxpayers will turn public colleges into factories. "

Why are students not considered customers by academia?  Why should academia  be above the law in how they treat their consumers?  Why the snobbery so commonly seen?

Is there a fundamental problem with colleges being run as corporations?  If they were to be run as a business then teaching is the primary revenue generation, with research and (hopefully) resulting royalties providing additional income?  Why is this considered such a sin?  Really, I went to PSU and graduated because I desired the education, I paid/invested in it as a long term product I would use for the rest of my life, I was the consumer in the equation, and could have left or stop supporting the business at any time

Thoughts?  Why would a corporate model not work?  Research is motivated to find and develop products or knowledge, so colleges would continue to fund it (much like GE, P&G and General Mills do to develop knowledge)

What do you think?  What objections are their from outside academia?  What comments are their from inside academia?  What do you think of your education and how it might have been affected if a corporate model was employed?