Has the college academic job market always been highly competitive and elitist?

Exactly, which makes discussion of the topic in general terms difficult. My experience in life science research at large state schools (none considered ‘elite’) is that hiring and retention of faculty is merit based, with little consideration given to personal factors that could be viewed as discriminatory. All search committee notes and correspondence are documented and decisions must be justified based on the academic qualifications of the applicant. Perhaps things are different at elite private schools, but transparency is required at the state schools where I have knowledge of the search process.