Cooper,
You are correct in that there are 23 teams strictly under the VENC format which is the format recognized by the NCAA; however, there are over 370 collegiate teams that compete under the IHSA format with over 8000 riders. I think the goal of VE is to recruit more of these schools to the their format, of course.
I don't really have a comment on Title IX and how the scholarships affect the other sports, but I will follow along the same lines as the previous poster. These young ladies and their families have invested many, many hours a week, and countless dollars investing in the training it takes to compete at this level. Some of these young ladies have won Youth World Championships in different horse associations, which puts them in an elite class of Equestrian athletes. They spend time in the weight room, for strength and conditioning, like all other athletics and are held to the same NCAA standards as the rest for academics and compliance. Their practice and training starts in August of every year and... well never stops. While they are out of school they continue training and competing.
At their competitions, they are given their "one play out of the playbook", just prior to competition, in which they must memorize precisely or be disqualified. It's not like me getting on a horse to trail ride, but requires intense rider and horse precision and speed, to compete at this level. Many of these athletes can compete at professional levels after college where some riders competitive earnings have and will surpass millions of dollars.
I think it is a great addition to college athletics. Many parts of the country have equestrian teams at the high school level. And... you are correct... it does help allow for some smaller men's sports.