I agree with this completely. When I think "game day atmosphere," it's the mostly the pre-game. I've been to Wisconsin, Nebraska and Maryland recently, and their piped-in music, announcer-read ads, etc. are similar. In fact, there was far more piped in rock music in Madison two weeks ago than there is here. That hasn't hurt their attendance or excitement.
We typically tailgate at East River Flats, though I'd rather be closer. As we walk toward the stadium, we see very little maroon and gold until we get to about Sally's (really miss the old Sally's parking lot). I was talking with a friend last week who went to an Iowa game and said, "Now I get it -- we were walking to the game and there were parties and loud music and people everywhere and the game hadn't even started. It was great." Well, I said, it's not quite like that here. But it is like that at Wisconsin and Nebraska, not to mention Iowa.
I believe there are many people pre-gaming at our games, but we're all dispersed miles apart. At East River Flats, the Fairgrounds, behind the stadium in the lots, etc. But it's possible to be near the old Big 10 restaurant 30 minutes before kickoff some days and not be aware that it's gameday. The U could help this along some. There should be a party on the grounds of the alumni center -- the whole grass area, not just inside the building with a few people trickling out near the door (Nebraska figured that out.) They would make money, too. They should help businesses around the stadium work with the city to allow tailgating in private lots. And, while they won't or can't close off Oak Street or University Avenue, there are other, smaller, lesser-used blocks that could become block parties with food trucks music, etc.
We need to make it a day-long event so when people come for the first time, they say, Oh, now I see why you keep coming." Even if we lose.