More competition raises the play of everyone, it adds interest and excitement to communities. I disagree with everything you're saying, kids getting scholarships to play sports and getting college educations is a great thing and should be the goal. Look at Dan Hurley's father, he got all those kids free rides to college through basketball. That benefitted so many kids, their families, the kids they went on to have. It improved the overall community.
Connecticut high school basketball used to send a ton of kids on to full ride basketball scholarships in the 70's and 80's. The public schools sent far less since. There's been so many kids who would've made it out of Hartford, Bridgeport, New Haven, Waterbury, New Britain had there been better programs in the following decades. There was a lot of wasted talent. That's a bad/sad thing.