When you're dealing with students with sports passes (ie customers who could just walk in if they wanted on a whim) visibility absolutely matters just like a retail store is going to want high visibility and traffic frontage. If this were a winning program in Indiana, or Kentucky, or North Carolina, yeah it probably wouldn't matter much, people would walk to a building in Hearne to watch the game, but I think it does have some effect here.
I'm not sure students going to basketball games was a factor at all in designing and building the arena and the grounds. It was designed for people to drive in from out of town, park, go to the building, back to their car, and then leave, which is not really what I think of as ideal in terms of a modern day college sports experience. Theres a whole before and after the game experience that Reed Arena was not built for.