In my country (and all of Europe) no. The fees are a nominal administration fee, which admittedly is crawling higher each year. The government, and the EU, then funds each student, and yeah that money would help with research.
I'd suggest that faculty don't want there to be a low emphasis on teaching, it's just that there aren't enough resources to do the critical tasks first. This is bearing in mind that teaching duties are always fulfilled either way (just not to the satisfaction of some people).
I think our difference in perspective is a result of our experience with different systems. I've met a number of professors who expressed contempt toward the undergraduate population at the Big State U where I did my graduate studies. It's not that they're reluctantly doing a bad job at teaching, they're doing a bad job and they really don't care.
I'd suggest that faculty don't want there to be a low emphasis on teaching, it's just that there aren't enough resources to do the critical tasks first. This is bearing in mind that teaching duties are always fulfilled either way (just not to the satisfaction of some people).