Correct the D-League isn't generating billions of dollars in revenue. Everyone knows who Kentucky, Duke, Syracuse and Kansas is. Nobody knows or cares about the teams in the D League. Those schools have a brand name, with great coaches. They play in unique buildings that people know. Their alumni and fans supports those programs because they identify with the school/program and coaches, not necessarily any one player. Who determines a players worth? How much should Paul Harris have been paid? His tuition each year at Syracuse was worth more than he's making in the D-league. Should he have gone to the D-League right out of high school? Syracuse was a better choice, because they provide the platform for kids like him to make it to next level, get an education, and free room and board, for doing what he loves to do-play basketball. Syracuse Basketball generates the revenue, not any one player. So what the players are worth 99% is their scholarship. The small percentage that can do better leave early and play professionally. Again, nobody is making these kids attend college. It's just the best option available for nearly all of them.
So your argument, if I'm not mistaken, is the following:
1. 100% (and not 1% less) of all the revenue the schools make, is due solely to identification with the school/program and coaches, and absolutely nothing to do with any player. Thus, the players are not entitled to a penny more than their scholarship.
2. No player is worth more than their scholarship.
3. Tuition at Syracuse is worth more than salary in the D league, thus Syracuse is a better choice.
Nobody is saying that fan loyalty is not a factor in attendance and merchandise. However, do you deny that a player like Marcus Smart provides additional revenue to a team like Oklahoma State? What about the extra national media attention? Will Oklahoma State get as much media attention next year when Marcus Smart is in the NBA? Will Oklahoma State not benefit if Marcus Smart goes on to do well in the NBA?
If colleges are willing to give players anything more than their current scholarship, then it proves they are worth more than just their scholarship to the schools.
And again, your comment "It's just the best option available for nearly all of them". It's the only realistic option for them if they want a chance to make millions rather than live in rough neighborhoods. If you offer Door 1 and Door 2, you force them to jump through whatever hoops Door 1 has. The problem is those hoops are unethical.
I'm arguing that regardless of whether they have other choices (go 2000 miles away from home to Europe if you want! Don't play here!), the lack of market value given to the players is wrong. When you add the fact that they are technically forced to go to college, it's downright unlawful.
And doesn't anyone else think "Go play in Europe or get lost!" is a little harsh? Why the tough guy attitude? For what?