In Canada, most universities are publicly funded. This means that the "old diploma" model can remain in place quite a long time because we collectively bear its cost.

Probably over my life time, we shall see some evolution, but it will be slow.

What could move students and the systems, is a clear signal sent by the employers. However, in my experience, the employers want U. of Toronto, or McGill graduates, and they simply do not care to know what the students learned. They just want to make sure that the fellows are smart enough to learn and adapt. Unfortunately, this applies to young graduates as well as older ones.

Change will come, but it will be slow.