Undergraduates with family income below $200k will be tuition-free at MIT

This is a great step in the right direction. I can't speak directly for MIT, but there are issues with how these programs don't apply to parents with small family businesses. My parents had a small business, with my father taking home a salary of $XX,XXX. Duke University used the business assets to determine the EFC (expected family contribution) of literally 90% of the salary. Essentially saying to sell off the family business for the college fund, which was a non-starter.

Small businesses are allegedly the backbone of America, and I feel these tuition support programs overlook this segment of the middle-class.

It’s incredibly difficult to structure these rules in a way that doesn’t discriminate against small businesses while not opening a giant loophole for the rich.

Why is the price you have to pay for something dependent on how much money your parents make? Feels so unfair

Because it is really a discount to the parents, not the student. It is understood that few 17 year olds have saved enough money to pay MIT's tuition of $85k/year for 4 years and parents are usually footing the bill.

Yes, students who's parents have money but choose not to spend it get a rough deal. You can make a pretty strong case that it is their parents screwing them over, not the school. The school doesn't owe a discount to prospective students.

You can't make that case at all. The price these name-brand schools ask is pretty much "how much do you(r parents) have?", and your kids could instead go to state school (if they can get into MIT, they probably qualify for a full ride scholarship or at least close) and have that tuition go to an ~80% down payment on their first house.