@JayHawkFanToo
For a school like Kansas, any change makes no difference, because they are at the top. Changes to the middle or bottom have little, if any, affect on KU.
This has more affect on the Texas Tech’s, TCU’s and KSU’s of the world. Those schools are in a position where yes, they can certainly pay the smaller schools to come in and play them, but the attraction of playing at KU, versus the payday they can get by playing at KU or another big name program is significant. Plus the TV exposure, etc. to have a chance to be on the radar for recruits.
If the NCAA were to re-structure D1, Power 5 schools would have to play the mid majors. That’s a big reason why its doubtful that D1 hoops makes any changes.
As you correctly point out, its a business, and the NCAA D1 tournament basically pays for the budgets for the NCAA, and mens basketball pays for the athletic budgets for roughly half to two thirds of D1 programs (basically all programs except those that have FBS football and those that operate at a loss).
Even in the single bid leagues, getting the revenue from having a team in the tournament is worth it, and if that 13 or 14 seed happens to swing an upset every few years, even better because that’s a huge boon for the league from a revenue standpoint.