The issue becomes Timmy Reclassified gets a spot at Virginia - Tommy CorrectGrade goes to St John's (no - I am not putting St John's down there are few schools that are Virginia - just using it as a D1 Lax program)...who has the head start on a job interview? They gamed the system and it worked out - do they have to live with it - well I guess this is not the first game or system they manipulated so yeah, they will live with it, and after a UVA education and alumni connections, i would guess pretty well - so yes people are going to get upset
The alumni network conversation is a good one; this is a topic that we often discuss with families who are wondering what the value of a $50,000/year private institution might be over a $20,000/year state school or anything that ranges in the middle.
There are other points to consider in your example which only an individual family can adequately answer:
Timmy at Virginia struggles academically and graduates with a 2.8 GPA. Tommy at St. John's handles the lacrosse and academic balance with a 3.7 GPA. Who gets the nod if both are applying for the same job?
Timmy loved his time at UVA, but wants to return to the Northeast and settle in the New [lacrosse] tri-state area. What is the value of the UVA alumni network beyond Washington DC?
Tommy decides to quit lacrosse after two years to concentrate on a dual major. Academics can qualify for an additional discount at St. John's. Did he need lacrosse at all in his portfolio?
Due to lacrosse, Timmy needed an extra semester to complete his studies with the year-'round training load. If you look over four years, did the lacrosse scholarship really save anything?
This list of counter and counter-counter examples is longer than the Point-Counterpoint Segment on 60 Minutes. Our points are that when considering an institution, alumni network strength, long-term location, and financial considerations for athletics and academics are all part of the eventual equation.