A few thoughts:
1. Lourdes added dorms for the simple reason that students who want to attend but live far away were being lost to other colleges and universities that had this traditional amenity.
2. The master plan is to reach 3,000 students. I don't think anyone at Lourdes has delusions of turning the place into a mega-monstrosity like a Big Ten school. If you left in 2002, when growth was already occurring, then the difference is 600 to 800 more students. This is hardly "destroying" Lourdes, but simply making Lourdes available to more students. Also: have you seen the newer facilities? Can you really say that Mother Adelaide Hall (one of the older classroom buildings) is superior to MacAlear and Delp Halls (the newest classroom buildings that opened a few years ago)? "Older" does not necessarily mean "better."
3. Offering athletic programs is simply another way to attract and retain students. There are few successful colleges that do not offer some sort of athletic program these days. Also, properly managed student athletic programs can enhance the undergraduate experience, and they increase long-term loyalty to the school. No one is suggesting that Lourdes field an expensive NCAA football program; the entry into sports has been modest and it reflects the school's smaller size.
4. Becoming a university (as opposed to remaining a college) simply reflects the fact that Lourdes has developed a number of graduate programs, and that there is significant research occurring at the university. If anything, the transition to Lourdes University helps you in terms of present and future employment: your degree received a subtle (but significant) boost in the marketplace, as universities are perceived to be more prestigious than colleges.
5. Lourdes is still a special place. Class sizes remain small, which is one of the reasons I enjoy teaching there. At UT I have taught classes as large as 250 students, while at Lourdes I have never seen a class go higher than 30 students, and most are around 15-18 students. Sometimes I have classes of 8-10 students, which is almost impossible at a large university. This summer I had a class run with just four students, which had to cost the university money, but the college kept it rather than inconvenience the students. At a bigger school this small enrollment class would have been cut rather than lose money by running it. Lourdes offers more support services than any other college I have taught at, and a walk down a hall on any given day inevitably results in seeing people I know. At a larger university like UT or BGSU, I might not see anyone I know on a trek across campus.
I humbly recommend that you go back to your alma mater and take a fresh look. It might not be the same as back in your years, but a dining hall and dorms add to the Lourdes experience.