At the last dojang I trained, a lot of time was spent on pumsae. We had one pumsae only night and pumsae were generally a part of other classes. We had one self defense only night, but self defense was also touched on in other classes. And we had one all sparring night, though sparring was also touched on in other classes.
In drills, I would say that about 80% of what was done was kicking until black belt. The reason for this was that it is much harder to develop good kicks than it is to develop good punches.
I don't see any need to get rid of the sport side. It is fun, has a lot of people who participate, and a nice healthy competition circuit.
If you're talking about "olympic sparring-oriented" or acrobactic kicks, I agree with you. But in my opinion kicks for self-defense are not
that harder, as typical self-defense options are simpler kinds of kicks (it wouldn't be very advisable to kick high or use fancy stuff in a life-risk situation). Let's look at Kukkiwon pumsae kicks, for example: most of them are very simple kinds of kicks (lots of ap chagi and yop chagi mostly, with a suspicious dolyo chagi appearance), and kicking high like they do today has more to do with aesthetics and the identity of the art than with effectiveness. Some applications won't even work if you kick above the belt (example IMO: side kick followed by elbow strike in taegeuk oh jang).
So in a class aimed toward practical use of taekwondo as a self-defense fighting system, I believe it is ok we put more time on hand/arm techniques, as they're more likely to be used in self-defense scenarios. By the way, many hand/arm techniques when practically applied on a resisting opponent are not that easy -- they do need a lot of practice -- with partners if possbile, in my opinion.
No matter how much one is used to kicking high: kicking low is always safer, and in a self-defense situation the variables are unpredictable, and they usually add more difficulty to perform any technique (irregular terrain with obstructions, inadequate clothes, inadequate distance), what makes high kicks a dangerous choice (I don't mean it is impossible to use, of course, I only say it is
dangerous). Not to mention the restrictions of distance to perform a high kick. Further, a high kick takes longer to launch than a low kick (the foot travels a longer distance after all), and yes, it makes it more predictable and easy to dodge/defend against. Oh, and it is easier to have the leg grabbed.
Once again, I'm not saying high kicks don't work, I just don't think it is a conservative choice, and when it comes to defend yourself I believe taking higher risks is not advisable.
What is maybe a good idea is to have separate classes (when it is possible in the school) to those interested in sport and those interested the other aspects of the art. The students could go to both if they enjoyed both. Or the school could just choose its main focus and say it out loud.
There is a marketing choice here, of course, and... that is the hidden subject of the conversation: marketing. So I know that many instructors in my city wouldn't dare change their teaching focus so they don't risk losing a few students (although I really believe there's market share for every kind of classes, but I don't make a living on teaching taekwondo, so I could be wrong, right?

).