My opinion is simple; students get academia everywhere else they turn at university. FSAE is intended to give a practical face to their studies. Results are what practical experience is made of. In the real world, there is ZERO credit for an interesting design that doesn't work in the field (on track). The design event is great and important, but it is judged on opinion not real-world merit and is not jusitified to be the bulk of the points for that reason.
I could not disagree more with the referenced article's premise. Using examples of what students say in design to reinforce the premise is irrelevant, I've heard a little bit of everything in design. University boards were fickle 20 years ago and still are. Worried parents, well they exist no matter what and I doubt too much extracurricular project is the first worry they have. My personal experience is that some sponsors really like the 'racing' side and some don't care. If there are some that don't like the motorsport side, there is plenty else to talk about. Either way, sponsors are more about results than learning (one might say that you learn more with less), so why would the article care about sponsors?
If teams are focused more on results now instead of trying to impress judges, all I can say is IT IS ABOUT TIME! I am tired of hearing how great a concept is when it flat out doesn't work because of the details. In the real world, details and results matter (perhaps more so in motorsport than other industries) so I see this trend as overwhelmingly positive and achieving the goals of the competition.