My grandmother was illiterate, yet she was the one of the ones that drove her children to pursue higher education and made sure they read books everyday. She's even force them to bring her their homework which she'd 'check over' (as in pretend to read) and give her approval.

Her children are now doctors, engineers or pharmacists.

The mere valuing of education is enough to change future generations.

I don't see the connection between not opening a university and one not valuing knowledge. Besides, it's not like The Prophet had the people to staff such an institute.

Hundreds if not thousands of scientists of Islamic background have attributed their seeking of knowledge to their faith.

I have also posted another comment on why 'ilm should not be restricted.

There are no hadiths I am aware of that critique worldly knowledge in and of itself. There are Hadith that critique obtaining knowledge that is 'not beneficial' or out of poor motivation, such as Hadith that critique people who pursue knowledge for worldly reasons like status, to show off ect.

There is another Hadith on this matter (albeit not as strong Hadith and one can indeed critique it's reliability and if it was actually said): "Seek knowledge even in China"

ie, even if you have to travel to a far away land like China. Travelling to China for study is definitely not knowledge of the religion (Islam), especially in that context.