That could be where this ends up for high-profile sports, such as football and basketball. Baseball and hockey are popular but not as popular on the collegiate level.

But sports like swimming, gymnastics or rugby? I think they will continue to be student-athletes unless those sports become much more popular than they are now.

I think a salary cap of sorts would actually increase the level of competition. If all division l football programs had the same budget, a terrible team like KU could decide to get crazy with some top QB recruit and in one move improve their standing compared to other schools. The top schools would still win out more often than not, but the same five or six maybe wouldn’t have the monopoly they do and it could spread to maybe 15-20 actual contenders.

Would your salary cap idea also help KU upgrade their crappy facilities and high school caliber football stadium?

Would it prevent them from making bad coaching hires… i.e. Charlie Weis and Les Miles?

No, and that's exactly why the teams at the top with the most money wouldn't automatically be the best. There are other factors. The Yankees don't always win the World Series. Indiana was a blue blood (and likely paid players) but some bad coaching hires have ruined that program. Kentucky got the top recruiting class every year for a long stretch but only won 1 title.