My point is, if we're not going to play to win, then football provides none of the benefits you mention; in which case, we're better off following a cost-minimization model. What we do now is the worst of both approaches, we get the same results a cost-minimization approach would yield, but we end spending nearly as much money as other schools that are seriously trying to compete.
A real cost-minimization model would make do with existing facilities, pay just over MAC salaries for coaches, limit scholarships to in-state student-athletes only, load up on non-conference away games for the paydays, and sell off B1G home games to those with big stadiums. We could play 4 home games when IU is here and 3 when IU is away. Think how much we could save on wear tear of R-A stadium! Plus, with the minimal attendance, we could shut 2/3rds of the concessions and half the bathrooms -- again, saving more money to "invest" in swimming, diving, women's softball, etc.