These other programs just throw 18.6 full rides out to girls and fall butt-first into national caliber athletes. I've seen first hand how 4-5 scholarships can be enough to build a good team. Unless your school specifically focuses on cross country, it's not impressive to only score athletes in the distance events at a conference meet.
I think you can have a very good cross country team with 5 women's scholarships and 4 men's in the distance, but it's every distance coach's dream to build a team of 5 distance coaches and only distance athletes.
No one is throwing 12/18 scholarships entirely into distance athletes. The schools that put every scholarship they have into distance are not fully funded (Iona, Furman, New Mexico), and the schools that are fully funded, and choose to focus on distance, still put scholarships into other events to score at conference (Syracuse, NAU).
Even if you are fully funded, it is hard to have a "balanced" team. You get 12/18 equivalencies for 21 events outdoors. Compared to Basketball, which is allowed 13/15 for basically 5 players, and 7-10 bench warmers.
XC/Track is also the only sport where scholarships for one sport, count against the scholarships for a different sport. The strategy/team makeup to win a team title in track is completely different compared to cross country. Track disproportionately rewards having a small number of individuals that are just way better than everyone else. This is a function of the scoring: 10,8,6,5,4,3,2,1. Being 1st is almost twice as good (by point value) as being 3rd.
“You come to this meet with five to six guys or five to six girls, and that’s how you win the meet. Now they all have to be good, and they all have to be on point, but this concept that you have to have these large numbers to win is not how you win championships. You win championships with quality, not quantity…Just because you have 100 kids at the meet doesn’t mean that you have 100 kids that can score.” Mike Holloway saying it better than I can.
Cross country is a team sport, and you are only as good as your 5th runner. Oregon went 1, 2 at Cross Country NCAA's in 2014, but "only" finished 6th overall because of how far behind their 4th and 5th man were. That said, they were right in the middle of winning 3 indoor titles, and two outdoor titles in a row. Obviously, they allocated their money well to make that happen.
So by trying to be good at cross country, and giving scholarship money to distance runners that improve your depth, and make your 3,4,5 better, you are actively taking away scholarships from athletes that could score in other events in track. If you are in a good conference, those runners are not scoring highly, or scoring at all, in the distance events. The opposite is true as well, if you spend scholarship money on a conference scoring long jump/triple jump athlete, you are taking away a scholarship you could use to be good at cross country. In basketball, you are giving scholarship to someone that makes your basketball team better, no compromises.
Neither of these strategies are right or wrong, it just depends on how the head coach chooses to allocate scholarships, and what they are trying to accomplish. If you aren't fully funded, it makes sense to focus on one event area you can be good, but people only complain when it's distance teams.