Reddit reviews Intercollegiate Athletics and the American University: A University President's Perspective
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Our athletic department is not a source of profit for the school either directly, or indirectly through alumni, see the following for discussion and references:
http://www.amazon.com/Beer-Circus-Crippling-Undergraduate-Education/dp/0805068112
http://www.amazon.com/Intercollegiate-Athletics-American-University-Perspective/dp/0472089439
the latter written by former president of U of M, James Duderstadt. This is an incredibly widespread myth which is extremely pernicious in its ability to confuse and misdirect. Only a handful of athletic departments in the country can occasionally make a profit, and this is only after the significant help with overheads from their University (grounds, maintenance, IT support, various staff) and the often directly shady or illegal bookkeeping going on. None of those schools which make a profit from their athletic department do so consistently.
As to your other points, see Beer and Circus above for a thorough destruction of all of those less measurable points. To simplify grossly: the spirit and "rounding" you refer to are blatantly antithetical to the school's primary missions of education, scholarship, and service.
In true reddit fashion, stop being a fucking sheep and look around occasionally.