"What would happen if every team in the nation threw more and more money at their sports program?"
I do believe that question has already been answered because every major team is now throwing much more money at their sports program. Salaries are about 10X what they were 20-25 years ago. What's the biggest difference? Coaches generally make about ten times more money than coaches used to make in comparable jobs. Other than that, not much is different.
What there hasn't been is any large transformation between who used to the best programs and who are now the best programs. Maybe a handful of top programs are now struggling more than they did in the 90s and a smaller handful of programs are doing significantly better than they were generally doing then, but can any of that small change be ascribed to spending or not spending money?
Foremost, the money is being spent because it exists. TV revenues have made everyone richer in absolute terms. In relative terms, the difference is not so great. Even the schools that took a recent hit by being shut out of the Power 5 when realignment came, at least in terms of football, are not really poorer than they were a generation ago. Cincinnati, UConn, USF and all of the AAC or MWC schools were not any closer to the upper echelon in 1995 than they are now.
Hugely extravagant salaries and facilities might be needed in this market to maintain position but there is little evidence to suggest they transform programs into better ones. IOW, you have to spend not to get worse but all the spending in the world won't necessarily make you any better.