Those are fair points, but the money offers the chance to win more consistently. If XU has a winning season because of a great coaching staff, but then has that entire staff hired away by Y State, then their future chances are diminished. Louisiana Tech is a great example. We won with Crowton, and he got hired away. We lost with Bicknell and nobody wanted him, so we can afford to keep him. We won with Dykes and he got hired away. In basketball, we won with Andy Russo, and he got hired away. We won with Tommy Joe Eagles and he got hired away for a paltry sum. We are winning with Mike White, but last year he almost got hired away. Duke wins consistently because they pay Coach K and don't let him get hired away by another program. That's true in all "power 5" schools, and it's how some programs win consistently.
Baylor is another good example. Texas flirted with Briles this offseason, but Baylor kept him. There is no way in hell that would have happened 20 years ago, but BCS money allowed them to not only keep their coach, but to build a nice new football stadium in a prime location.
When Dooley was here, Damaris Johnson was deciding between Tech and Tulsa. He chose Tulsa and told Dooley, "Coach, they just have more stuff," when referring to Tulsa's facilities. Having those facilities helps recruit players like Johnson who, in turn, help win games. Damaris Johnson is in his 3rd NFL season.
Regarding the "cash cow" issue, Forbes has said that Nick Saban is actually underpaid based on the money that he has brought into the school. From a quick search, here is one link to a Forbes writer saying as much.
http://ferrall.radio.cbssports.com/2...th-to-alabama/
There are a lot of articles out there that talk about the value of athletics to a university, but you get the idea. Success in athletics, and the money that comes from that success, benefits other parts of the university. When Boise beat OU in the Fiesta Bowl in 2006, their applications for admission increased by 30% the next fall. Many times on BB&B, someone has said that athletics is the window to the university. I'd say it's the marketing program. I live in Las Vegas, and have several friends who went to former WAC schools. When they would play each other, none of us ever said, "Hey man, Tech has a better math program than Fresno." Athletics is the thing that keeps selling my university to me, and keeps me interested in how things are going.
Of course, the BCS (and now the playoff) is a self fulfilling prophecy. If you are in a BCS conference, then you will make huge money no matter how horrible your teams are. That money keeps programs relevant and helps them avoid wandering in the wilderness for years, like we did between Crowton and Dykes. But, that money and exposure brought about by having the money to win consistently, helps universities in many other ways.