Yes, I do understand it. The U is run by academics? Don't you realize that academics are the sole reason that universities even exist? If you don't like academics, perhaps you would find the NFL more to your liking, no pesky academics there.
We do not have a "mini stadium". It's an average sized D-I stadium. It is not as large as other stadiums in the Big Ten, but looking at Big Ten stadiums gives a skewed view, as we have some of the largest stadiums in the country.
But why is TCF the size that it is, instead of being larger? A couple reasons. For one, it's what we could afford. We would never have gotten the funding for an 80,000 seat stadium. But the stadium was built with expansion in mind. The second reason is that 50,000 meets our needs. If we had built an 80,000 seat stadium, it would have 30,000 empty seats, and it would do us no good. 50,000 people in a 50,000 seat stadium is a fantastic environment, 50,000 in an 80,000 seat stadium is like playing in a crypt. If this secret cabal wanted to undermine the Gophers, building an 80,000 seat stadium would be a better way of doing it than building a 50,000 seat stadium.
But if the U had wanted to undermine football, there is no way they would ever have built a new stadium in the first place. The stadium is proof that your conspiracy theory is wrong.