My own view is that linking sports entertainment with colleges and universities has had a damaging effect on higher education overall and was destined to lead to what we have now. We are the only nation that does this, at least in a big way, yet the others still manage to produce high level athletes without linking sports to educational institutions.
DIII would seemingly disprove your point, in my opinion.
Those schools don’t seem damaged, nor is there much money to be had.
But DIII athletics is as robust nationally in terms of number of programs, athletes, and coaches, as any of it.
There is just this unique thing in the US with schools having sports teams, and that being a thing. Almost like a romantic notion of it.