I didn't mean to infer causation ... that expanded coverage reduces attendance. I think right now, athletic associations are ok with dwindling attendance because the broadcasting revenue compensates for that. But ... it's not forever. There will come a time when those broadcasting rights drop.
When I looked at attendance a few years ago, the key drivers of high(er) attendance was (and is) whether or not the stadium is located in an urban setting (which reduces attendance), the density of alumni within a 5 mi and 10 mi radius, and finally, the quality of the opponent.
In general, we can't do anything about the setting (unless we hold games in other locations like Macon or Savannah, which may not be a bad idea) or the density of alumni ... we only graduate so many a year. No, the one thing we can control is who we play. We are simply better off to play the crappiest SEC teams we can over teams like Bowling Green and Alcorn State because it creates Exposure. You can't change perception (I'm using the marketing definition here, not the vernacular) without changing exposure.
Two cents.