One anecdote only, but one I see in my community repeated over and over - my former neighbor girl, recently graduated, is playing basketball for something called "Central College" in Iowa. She's a 5'7" forward who, while she started for her high school team, was perhaps the 4th or 5th best player of the starting five. She has explicitly stated she's going to Central because she can play basketball there.
I have a friend in administration for a UMAC school and that school has added athletic programs specifically as a recruitment tool. The school opted to forego football due to cost but added men's soccer. The school instituted hiring and wage freezes this academic year after previously dropping academic programs due to declining enrollment and uncertainty about international student visas. Notably absent from the chopping block: athletic programs.
For most schools and athletic programs, I believe that your first statement in your first paragraph may have been true once upon a time but in today's very competitive and challenging environment, athletic programs are absolutely part of enrollment.