I'm not sure what to make of that. Although it is interesting that UND and SDSU are already at a level with 2 Pac-10, 2-Big 12 and 1 SEC school, so it appears their status in major D-IA conference has not put them noticeably ahead of UND and SDSU. Also it says the athletic move may affect the rest of the University, but does not mention if it would do so in a positive or negative fashion.
I honestly don't believe having a DI or IAA athletic program can have that much of an impact on attracting research grants. As has been mentioned, you may be able to throw some tickets the way of a congressman, but that's a pretty small perk, and they are in DC most of the time anyway. UND is a little different in that the entire North Dakota congressional delegation are alums. I don't know what that situation is in South Dakota, although I believe Janklow went to USD and wouldn't be surprised if Daschle went out of state. Johnson is a pretty good guy, levelheaded and down-to-earth, so it's possible he went to Brookings.
I think it's clear that there are DI and DIAA teams that have athletic programs that are clearly inferior to those of most, if not all, NCC schools. However, what is working against the NCC schools, and has been for as long as there has been intercollegiate athletics, is geography. The NCC schools are too far from other DI schools of similar size. It is obvious UND and NDSU will never be in the Big 10 and USD and SDSU will never be in the Big 12. These two conferences house all other state universities in the midwest. If the Dakota schools were located in the western parts of the state, or even if Montana or Montana State was located in Billings, the Big Sky might seem more realistic. Bozeman is 900 miles from Fargo, and that's not a fun drive for a game, even less so to Missoula, crossing mountains during the winter.
This DIAA move at NDSU is almost entirely geared for the football program. I don't see how any other sport benefits. The flagship wrestling program has been relegated to being a farm team for the Minnesotas, Iowas and Oklahoma States of the world. And the saddest thing is, they could have used there DI exemption for wrestling. The basketball teams face 13 years in purgatory, and Title IX will become a problem when they add 27 new football scholarships. Finally, I don't think they will get this anticipated return to glory- as other IAA schools will also have the full scholarship complement, a far cry from the 1980s Bison dominence when they were the Yankees of Division II, buying up all the talent with their edge in scholarships.
That's my $.02
Vindy