UP really has no choice as they were not able to commercialize their vast land holdings. The facilities were not really maintained but it was the quality of teachers that made UP what it is. But in recent years, a lot of instructors went to La Salle, Ateneo & UAAP because of the relatively low pay they were getting because of the salary standardization law. They needed the increase just to avoid the detereoration from getting worse.

With regards to the choice between programmed/course based learning and problem based learning. It is not really a choice. courses are designed to give you information about certain subjects. It is up to you to try to apply what you have learned into real life situations and convert that information into knowledge.
People always tell me to think out of the box. My answer is that you have to be in a box first before you can think out of it.