Who benefits from removing those who actually develop a physical competence and commit to training and competition?
The people who are there for academics, as opposed to being there to play a game.
There are only so many places in a class. Reserve them for people who go to a school to learn.
So you're good at sports, or some instrument, or whatever. That's nice - but why should it give you an edge over other people when it comes to school admission?
Thanks to the replication crisis, statistically, probably half your professors were frauds anyway, especially if you went to a top tier school in the last decade or two, and almost none of them would have been athletes. They don't have the character required to succeed in a physical discipline, and they hate athletes because people from physical culture are difficult to bully and decieve.
Want to learn how to work on a team? Sail a boat with a crew. Want to learn to push boundaries and take risks? Race downhill on anything. Want to solve coordination problems? Play football/soccer. Want to appreciate nature? Surf. Want charisma? Ride a horse. Want to understand cumulative effort and long term strategic goals? Powerlift. Want to understand endurance? Run marathons or be a triathlete. Want to learn ego discipline and humility? Play tennis. Want to read people? Try fencing. Want to learn what performance really means? Do any of these at a serious level. Dismissing athleticism is just farcically ignorant and effete.
Maybe the argument against these is that they require class, but I know poor kids who have achieved at the highest levels of most of them, and they earned the class distinction and respect for their skill that comes with the competence. Merely learning to call things problematic and fall into line commands no respect from anyone, and it has created a layer of anxious impostors driving institutions into the ground.