The point is to have enough of both. Sounds like a cop out, but it’s the only answer that makes sense.
On the utility side, a degree should provide a fundamental understanding of a field in a way that will be useful for finding jobs, and proof that you actually have those skills (i.e. a degree and a GPA). This part seems to be the more common emphasis these days.
On the “liberal arts” side you learn more widely applicable skills that are useful in life, such as philosophy, history, math, science, writing, etc. Useful but these days, less and less popular.
I will say that it is, in part, the fault of those who teach more obscure subjects that the liberal arts portion of an education has become less popular. No sane person will spend 4+ years in school, on top of tuition, if it doesn’t have any tangible benefits - nor should they. A good well-rounded education will teach people to use their skills in a better way, and perhaps to better appreciate why they have to learn what they learn in college. Trying to justify the need for the kinds of soft skills you learn from the philosophical/historical/humanities classes with arguments that might as well be described as mysticism… not a good idea. There is a definite need to protect and pass on culture and philosophy, but I’d say it is being done poorly.