There is some worthiness to having the "Director's Cup", but there is also a lot about the "Director's Cup" that would merit not giving it much weight.
The way the rankings can skew things to make a program look good - based on sponsoring a lot of sports that no one, including the vast majority of universities, cares about - is a big misleading factor.
Using just PSU as an example:
PSU's ranking benefits greatly from "no one cares" sports programs, and to be fair, so do the rankings of many other schools.
Just some examples:
PSU received 60 points for Men's Volleyball
PSU finished 5th in Men's Volleyball.
Other P5 level athletic programs that have Men's Volleyball?
USC, UCLA, Stanford, BYU, Purdue, and Ohio State. That's it.
PSU gets a big chunk of points for finishing 5th. They thumped Saint Francis and NJ Tech Institute. Super. Right?
Fencing picked up 72 points for finishing 7th
P5 Level Programs with Fencing teams?
Ohio State, Boston College, Notre Dame, North Carolina, Duke, and Stanford. Northwestern as well - but only for women.
And Penn State gets 72 points for finishing 7th. The same number of points that an Elite 8 team in the NCAA basketball tourney gets,
Some others:
25 points for finishing 9th in Women's Ice Hockey (with 6 P5 level programs in the nation)
45.5 points for finishing 25th in Women's Gymnastics (out of 34 P5 level programs)
and 73 points for finishing in 5th place on the Men's side (only 10 P5 programs left)
About 1/3 of their points came from accomplishments of finishing among the worst of their P5 level peers. But it is not something that just impacts Penn State, to be sure.
Some of the other "top programs" got boatloads of points for similar mediocre or worse finishes - in sports like Women's Water Polo, Beach Volleyball, and Women's Rowing - sports with only a handful of participants.
A much better measure of on-field success - if one truly wants to measure "success", as opposed to how many "no one cares sports" do we sponsor - would be to look at how does a sports program rank wrt the placements of each of their sports program within their conferences (ie, among their peers).
One thing that has been trending at PSU is a huge drop off in women's sports' success (that started the last few years under Sandy Barbour) and more recently a barbell effect (a small group of programs ranking very highly, and a bunch that are cellar-dwellers - PSU has a large number of worst-in-class or close to it programs in the Big Ten) under Kraft.
One of the benefits to "barbelling" things is that fans tend to completely ignore/forget about large numbers of cellar-dwellers - and focus (positively) on a few high-achievers. So barbelling makes for better PR.
What is the "right" goal for an athletic department? Who knows - and folks will have a wide variety of defensible opinions on the matter, for sure. But "Director's Cup" - unless you take the time to filter out some of the nonsense - is a very flawed metric in many ways.