The problem with your thesis is that the significant growth in the business enterprise is not in paid teachers, travel budgets, etc. for taking kids to tournaments. So your thesis doesn’t hold up.
The growth is in programs that provide training either off-site or at a school - but not as part of scholastic tournaments per se.
The programs are grounded in volunteers who may outsource the coaching. The reason really isfairness. Most coaches won’t win that trophy - yet they still care about that fairness.
No, it’s not. Even the HS which have places for the trophies typically stash the chess trophies away. I too had a basement full of trophies and eventually had to trash most of them after a flood. It’s easy for people to “blame” it on trophies cause it sounds good, but it actually has little if any basis in reality.
The organizational aspect of scholastic chess is largely done in a volunteer fashion although actual chess instruction may be outsourced. The chess instructors don’t want the trophies either, and frankly, they don’t need to the victories to successfully have a chess business. Many of the most successful businesses do little to teach chess - they are actually glorified baby-sitting services for kids who need before school or after school programs. These businesses are more successful because they are easier to scale - and they don’t have to pay as much for a chess instructor.
The notion that its primarily about money and chess trophies is just wrong.