I think it will dilute their exclusiveness. As it is I think IIT's are a success due to the culture imparted on the people there and facility. May be a new set of colleges could be brought about to impart better culture and be named different. As IITs and RECs there should be another set of colleges which should take the best from IIT system and REC system and blend it with those of IISc's and get a better research output.
