I feel like, having grown up in a low socioeconomic school in NSW, that TAFE was a lifeline to so many students that did not want further academic study and could go there to learn a trade and not just fuck around for year 11 and 12. A good number of them should have left in year 10 for it imo. I'm not sure they would have had the same sentiment if that education was attached to a university where the norm is considered to be written assignments and exams.
University is just a word, and I'm sure it's possible that it could be well implemented by UC (likelihood of that is a different equation), but people will care about the name and what it implies.