... administrators use all the cash -ostensibly for research- for administrating, and there is little left for any actual research. So Unis eat like elephants and shit like mice.
This is sort of, but not exactly, true in my experience. When I was winning grants my research needed research space, it needed sometimes expensive equipment, it needed technicians. All expensive stuff but stuff that needs to be in place. Putting it in place is partly what I think you are calling administration ... and to that extent I would ask how else you think it might be done? I certainly didn't want to supervise contracts for new buildings or bargain with the technician's union. I just wanted to do research. So having the administration do their thing was fine with me.
Now university vice-presidents and vice-deans do have a habit of proliferating and empire building. They like to build new buildings and attract new funding instead of concentrating on maintaining and improving the infrastructure that is already in place. To this extent I agree with you and could be made more efficient. But I don't see how any of that is holding researchers "hostage".