didn't spend a whole bunch of money (maybe a tiny bit - an extra letter or two) recruiting me for academics.

Transferring to another school for academics does not guarantee you a scholarship. In fact, if you could not compete academically at the first school, it is highly unlikely until you prove yourself for a few semesters at the new school.

And there are schools an athlete can transfer to without penalty and still compete. How many non-FBS schools are out there? Hundreds.

The point is, if I sign a letter of intent and scholarship agreement with a school to compete in athletics, and then I put forth less effort and dedication than other athletes and I just don't compete, why should the school respond by continuing to pay my scholarship?

Should BYU have continued to pay Ryan Kessman his scholarship, doctored recruiting film and all? Luckily the kid withdrew and transferred (2 or 3 times, in fact).

How about if an athlete can't compete on the academic side?

Now, if a kid gets injured due to the sport and is unable to compete, by all means the school is obligated to continue the scholarship. I suspect that Colby Jorgensen is still on scholarship if he remained at BYU.