As much as I agree with you, it isn't happening. The university has already issued RFP's to convert that space into academic space, including a large (400+ seat) auditorium.
@Buffnik, Balch needs to be gutted. Besides the stands on the south side being borderline condemned and the opera boxes being about 40 years late in terms of needing renovation, the press boxes are an absolute joke. I don't think it would be out of the question to gut the building entirely, while retaining the north and south facades. You could even keep the aesthetic look of the large windows at the corners facing the field.
As to your point about hosting more events, there would need to be some major reworking of the lower bowl. Folsom isn't wide enough for soccer, and barely wide enough for lacrosse.