And in hockey, big time high school hockey is the norm also. An important part of the Minnesota culture is that the kids don't have to make a choice between high level hockey and the "perks" -- the adulation, the big man on campus, the community hero, the thousands of people in the stands. Kids in most other hockey cultures make a choice between playing high level hockey in front of scouts, friends, and family or being the big fish in the small pond.
So not only has MJ and club teams hurt the colleges directly; they have also hurt the sources that feed them. I've noticed it in watching New England prep school games over the last decade; there aren't any more teams like the Brian Boyle St. Sebastian's team that had something like five or six D1 players on it.