First of all, yes, you can live in the same two worlds. There are plenty of students who receive scholarships (aka compensation) from the school who have special privileges that are not employees. Many support the billions of dollars of research that flow the school without gaining employee status from the university. There are also kids who receive scholarships to play sports at private high schools. Does that make them employees of the high school?
Second, the only reason these student athletes are being designated as employees is because a single bureaucrat in the NLRB thinks they are being exploited. This one bureaucrat will not have the final say. It will either have to codified by law or make its way through through judicial review.
Regardless, if this does somehow come to pass that they are employees, I will stop supporting college sports. It will not get one more dime from me. I will cancel my scholarship endowment and direct it towards another cause.
Finally, I think the unintended consequences of this will be both horrific and hilarious as most of these kids will now not be able to pay their tax bills and will probably be forced out of school for not paying their tuition. Getting a check every month and paying your bills on time is a lot different than having the school take care of everything for you. You want to be an employee then its time to grow up and act like one.