It is only a Title IX violation if BOYS DA players are also not excluded. Football has nothing to do with it since they play high school so it's not equivalent. It's also not equivalent if the sport isn't offered at the school (such as gymnastics, rugby...).
While it does suck, it seems the AD seems to be making a statement that they want to honor student athletes that go the extra mile and play for their school. FWIW we know quite a few DA players (both boys and girls) who quit DA senior year so they could play for the high school and get the NLI fanfare.
So a school shouldn't honor a gymnast that gets an athletic scholarship because the gymnast chose not to play a sport offered by the high school? As you say, the gymnast isn't going the extra mile to play for her/his school.