It's no more sensationalist than your split in cricket scenario. If teams bow to the BCCI and say "yes sir, we won't pick any ICL players, three bags full sir," then what's next? BCCI could get pissed off by something else and make their stance clear on that, and what do the other boards do then?
If the Shane Bond thing had happened in Football, there would be serious repercussions for the boards involved. But it happens in Cricket, and people actually think the ends justify the means, because the ICL is nasty. Let me tell you, third party selection is as bad as matchfixing in my book, because it means it's not a level-playing field. And the fact that Shane Bond doesn't play for NZ, sure, it was officially NZC's (is NZC the name of the body, sorry if it's not) decision, but it was done under pressure because as you and Richard have said, there can be heavy financial consequences which are damaging to the smaller boards for pissing the BCCI off. This amounts to third party selection by proxy.
As an aside, if there was to be a split in cricket, well Sri Lanka wouldn't appear to be falling on India's side at the minute...