I disagree with the view that we should stop the sports aspect and invest in recreational infrastructure. This will not increase the physical fitness of folks and should not be the reason/excuse for shortcomings. You are either dedicated or not at the end of the day. The gym could be next door and some folks will not go.
Keep the sports going. It promotes the CF, helps develop well rounded leaders (not implying that gamers are nerds and jocks better leaders), and promotes fitness.
Just my two cents.