It would take alot more than what you say to offend me, Maverick don't worry. Criticising my football team would be a good start though.
I can only comment on what I have experienced while in the British education system, so bare with me. Firstly, from the age of 14-16 kids take what are known as GCSE's. This is a structured program, with qualifications given based on performance in exams (taken at the end of the two years) or ongoing coursework. Believe me, you do no work here and you will fail and not get the qualification; I know alot of people who this has happened to.
At 16 you can move on to GCE 'A'-levels, based on what you achieved at GCSE; if you don't get the neccessary grades you can't do them - it's as simple as that. A-levels qualifications are given based on exams etc as before.
A-levels are then used to gain entry to university. Most people take 3 A-levels and points are awarded depending on what grade was achieved. Each university has a points and subject requirement. No work = crap grades = no university or a poor one (and any degree you get is then laughed at by employers).
Degree courses at most university's are not a push over - hard work is required and you get nothing for just turning up at lectures to increase your 'seat time' as you put it. Universiy's have no obligation to give a student a degree just because they made it that far. I knew people who were kicked out because they just smoked pot all day and did sweet FA the rest of the time.
Actually getting a degree requires committment, money to pay living expenses and very hard work. The pressure is on to get a good degree so you can get a decent well paid job, and make the time you spent studying worth it in the living standards stakes. It costs them plenty to obtain it, believe me. Why must everything be measured in purely monetary terms? An ex-girlfriend, for instance, had a nervous breakdown while at Cambridge uni. completing her finals. That cost her plenty - and I'm sure she wasn't an isolated case.
So to sum up (I know it was pretty boring), at no stage in the British education system can an individual do no work and still come out with the goods. It's simply not possible.
Also, most students finish their studies up to their eyes in debt (I know I did). BTW - students now have to pay a heavily subsidized part of their tuition fees, which is paid by taking out student loans. It's a disgrace that a 'socialist' government has brought this measure in, but that's another story entirely.
As I said I can't comment on your system - I haven't worked through it.
It's very commendable that your relatives could find a way to get to university - but why make self-improvement such a hard target to attain? Working on the side while studying is a very hard thing to do, and succeed academically (I know from both personal experience and from that of friends). I have nothing but admiration for anyone who can pull it off. But I know plenty of people who couldn't and ended up with crappy degrees as a result.