Well Agrarian- Many modern day protestants and other denominations claiming to be Christians have abandoned God and His word in favor of political correctness- but fret not, they'll be judged for it in the end when they take the highway to hell. There are still many fine institutions that don't care one iota for P.C and instead follow God's word
You are very correct on all counts. I have come to the conclusion in my unscientific survey that in general, the "main-line denomination" campuses are actually worse than public universities.
You are also right that there are some fine non-P.C. institutions. I attended one myself. There are certain problems, though, for some parents and students.
One is that if a student wants to live in a certain part of the country in order to be closer to home, that limits how many of those colleges are actually a realistic option.
Another is that most of those colleges are (naturally) overtly religious -- which is a fine and outstanding characteristic, especially if one shares the particular flavor of Christianity of the institution.
An evangelical may live close to one of the 2 or 3 strong, conservative, Catholic colleges -- but probably wouldn't be comfortable there. Likewise, a conservative Catholic might not feel comfortable at a strongly evangelical college.
I'm an Eastern Orthodox Christian, which means that my kids probably wouldn't be particularly comfortable at either one (and many of them require specific statements of faith that they might not be able to agree with 100%) -- even though they undoubtedly would share pretty much exactly the same moral, political, and lifestyle standards. There are no colleges or universities of an Eastern Orthodox background in the U.S., so we all get by in various ways.
And for now, it seems that the best option I have seen is to attend a public university in a very conservative part of the country, and have them be very involved in their local Orthodox parish. Being careful to avoid the universities who are making a point of being different from the surrounding heartland by being extremely lefty...