While I agree fully with the idea that sports or the obstacle course (or long distance orienteering, or competitions to answer regimental history questions etc. etc.) are great ways to build team work and morale, most require a much greater investment in time and resources than 1X NCO and a piece of relatively flat ground.
There are lots of Reserve armouries which may once have been out in the boonies but are now surrounded by urban sprawl and have no dedicated sports fields or obstacle courses. I have been on bases where trying to book an obstacle course was a pretty remarkable exercise in overcoming (bureaucratic) obstacles in it's own right.
Drill has lasted thousands of years because it is a quick, cheap and effective means of teaching teamwork and obedience. Douglas Bland's argument against teaching parade square drill was based on the fact parade square drill no longer has an immediate tactical application (our parade square drill is evolved from tactical evolutions from the age of black powder warfare, and any British officer or NCO under the Duke or Wellington would recognize it [and probably be very critical of how we do it as well!]). Never the less, the mental attitudes and conditioning are important underlying factors in performing modern battle drills.