Yes, this, re athletic admits and preference. It's not necessarily about being a D1 college level athlete (or pro, or any other 0.01% criteria dream). Rather, it's about building a college admissions "resume" with various activities, almost all of which are complete garbage, but are required to show that students are "rounded". Athletics is one of those, and even if there's no scholarship potential, participation in sports might help get a student admitted to a school which would otherwise deny them. For that, you don't need to be a star; you just need to be good enough to make the team(s).
I've used my kid as an example before, but I don't have any ambition for him to play D1/etc., soccer or anything else. However, I do hope that his participation in sports at the HS varsity level helps him with admissions generally (along with Math Olympiad, etc.). That's where I'm at, and probably where the majority of parents are at, with respect to HS sports participation.