At most other places, they ALL are. It's not the players' fault. The system has been designed this way and they are just responding logically to the incentives placed in front of them. I think that, in the long run, it will be the death of college sports.
That goes even more strongly for BYU. What if someone came to the BOT and asked, "Why is BYU running semi-professional teams and paying lots of money for players, most of whom don't belong to our faith, to represent us? Does that square with the mission of the University?"
I don't know what the answer would be, but I don't think it would be a slam-dunk one. There is a LOT to consider about this situation.