Personally, I think if someone wants to pay the way of, let’s say, 300 students to get full scholarships, so that their child can attend, this seems like a very sustainable model which benefits everyone involved.

$37 million buys a lot of resources so arguably this isn’t taking a spot away from anyone, if anything it is enabling these universities to provide more spots to students who deserve them, potentially at zero cost.

This is very speculative. His children getting admitted to these schools might very well take away a spot from someone else unless they would be admitted anyway or the numbers of admitted students increase. This discussion is a fascinating read, arguments from all directions rationalizing this behavior and somehow making it work within our social contract.