You're right. There is nothing wrong with being a school for the general population. I just don't think that a Big Ten university--one that was specifically founded to be the state's flagship campus and written into law as such in 1906--should serve that role. The notion that it was, was a perversion of its mission that flowed from Jim Rhodes' personal philosophies combined with the presidents of a couple of other state campuses who saw that as their chance to cut big brother off at the knees.
As for being a campus for the elite, my feelings vary based on what you mean. If you mean the campus in Ohio for the best students, then I have no problem with Ohio State being the campus for the elite. If, on the other hand, "elite" takes on a socio-economic basis, then I agree with you. I don't want Ohio State becoming a haven for rich preppies. The state already provides that campus.
Seriously, I think the Ohio State administration has done a great job of preventing that. Despite current admissions standards, Ohio State is enrolling a lower percentage of students from 100K families than other selective public universities (27% to 38%) and a higher percentage of first generation college students than the overall national norm (22% to 15%). Additionally, it's made lists of one of the best campuses in America for minorities. Despite being the highest ranked, most selective campus that also has the state's only nationally prominent research infrastructure, it's tuition is only 4th or 5th among Ohio public campuses. So, I don't think that high admission standards are necessarily incompatible with access.