I could be completely wrong but I think SoCal is an outlier in this regard. Out here you have affluence combined with an amazing gene pool. When I look up and down the streets of my neighborhood they are filled with former Division 1 scholarship athletes. There are several professional athletes as well as relatives of sports legends around here.
When I first moved here I realized my kids would never be able to compete with that and opted out of most of the organized sports here. They are far more competitive than where I came from and I came from a big time high school in NJ (kinda like Torrey Pines or La Costa Canyon) that regularly won championships in many sports and many alumni that have had professional sports careers. I figured my kids would be smart and that would serve them better in life.
When I talk with friends back east they still view sports as fun and part of a well rounded upbringing but not a way to make money. Many of these kids are seriously talented atheletes but their parents arent sucked into beleiving they are more than they are. I truly beleive its different here.