I would not agree that creators are being robbed by universities. Copyright has always been a limited right; it's not an absolute right to control every aspect of every use of a work. It has always been a limited right that gives the owners of copyright certain limited rights. It also defines the rights of users.
A robust fair dealing is part of the guarantees. If you want to ensure that copyright is constitutionally valid—that it is a valid limitation on freedom of expression—a robust fair dealing must be part of your law.