The best argument against any rule you find unjustified is just not to enforce it in class or to enforce it selectively.
The attendance issue is a difficult one. IMHO, your university policy is quite justified for poorly performing students and totally ridiculous for well-performing ones. The main argument I would put forward is that the main objective of the teaching is to pass the knowledge and that having free time is an indispensable condition of learning at the top level. So, if somebody appears in the class now and then but has consistent top grades on all exams and quizzes, I would let it slip. However, if his performance drops even a bit, the attendance rule goes into full effect for him again.
Whatever way you argue, keep in mind that your administration is not doing something "totally wrong" when requiring mandatory attendance. It just a) aims its policies at the bottom level with the usual idea that "the law should be the same for everyone" (the idea I strongly oppose in most settings except the completely trivial ones, but this opposition is a hard sell in the modern democratic society) and b) tries to solve the problem by using brute force instead of being a bit inventive about it (a much more efficient thing to do would be, for instance, to require a mandatory tutoring for anybody whose current performance is <60%, say, and to have a free tutoring service offered to students).
This was (my humble opinion) about the attendance issues. As to "adding more and more classes", I suspect they are just trying to pump the tuition money at the highest rate they can. If so, there is no argument against a person who just found a way to get 11 dollars per hour instead of usual 10. That is, no doubt, detrimental to the education process, but in every fight of greed against a lofty goal, the greed prevails. See if there are some regulations that explicitly bound the number of credit hours and the student workload in general (you may be (often pleasantly) surprised with what you can find in the university regulation books if you ever bother to read them). That's technically your only chance (again, IMHO).