I'm not saying what sports does is right or wrong, but we have Playoff pep rallies for 2-8 teams (or even 0-10). Kids are attracted to that.
At the end of the day, a really excellent football team will win Div 1 and another really excellent football team will win Div 2. Same for band. But before that a lot of programs will get a boost in support along the way because they are more competitive. In my opinion that is a good thing for our programs and professions.