Kib - I like your post, but I also think you ignore a whole bunch of professional athletes in both of those sports that did NOT take the scholastic aspect of their scholarship lightly, and while they may have left early, still completed their degree. And many have used that education for pretty good things post career or even during.
A scholarship is only a sham if the student treats it as such and the school allows or encourages them to do so. The problem that all of us have is that too many students and schools do. And while the students are young and susceptible, the same cannot be said for the school administrations.
And I would add - NBA and NFL as leagues and their owners and players/union are raking in the money - they have had a few half hearted attempts to develop minor leagues, but ... if they or we really cared making a true minor league system for those sports would be a great place to start to solve the NCAA 'issue'. I included the players and union because if the ones that succeed through this system thought it was a problem they should be doing something about it - they have the financial resources now. (I am always pleasantly surprised when one of these modern multi-millionaires is involved financially in backing their alma maters - say what you will about JoePa, but that was one area where his heart was in the right place.)
JRRRJ - for the same reason that developing world class brains or artists, etc. is something we strive for. Now is it essential that that work occur in a college environment - no. Other countries have sports institutions from the Russian/Chinese model of testing everyone at a very early age and churning them like a factory to something a little less scientific as the Aussies and a number of European countries are doing with WCBB national teams. We do some of it in the states for some sports, but most of the access to that kind of training is based on money, not necessarily skill. There is also something to be said for the grass roots natural selection that exists in the US, and worldwide for things like soccer and cricket.
And where the colleges fit into the equation is the 'money' - they have the facilities and employees and access to scientific research (Gatorade, anyone) to help develop kids. In the process, a number of them have also sold their souls, but the problem starts with them and not the 'NCAA'.
On the NCAA structure - interesting to see the original 'charter', but aren't all the rules and regulations subject to the approval of a majority of the college presidents at each division level - and wasn't the BCS sort of an end run around the NCAA structure?