The only thing I would add to this -- I agreed with almost all of it -- is that the reason more kids are headed out of state, and the reason applications are shooting up EVERYWHERE -- is because colleges haven't kept up with demographics. It's quite the opposite. Because USNews puts such a heavy premium on student/faculty ratios and acceptance rates, schools have done all they could to limiting the size of incoming classes.
In 1969, the US had 9m students at 4 year universities and colleges. Population was just under 200m.
In 2022, the US had 10.5m students (down from a high of 11.5m) at 4 year universities and colleges. Pop. is at 330m.
Many here of a certain age can attest that it was much easier to get into college in the past (in my case, the 1980s) than it is now.
And schools without major sports are skyrocketing in popularity and applications just as those with sports are, so the emphasis on sports as marketing (which is indeed real, I'm not disputing) may be overblown. Check out Boston U (dropped football), Northeastern, the SUNYs, Vermont, etc., all the privates without bigtime sports, and you'll see the same trends there.