I've not heard anyone say that the "world is watching" this.
As far as our obsession with college sports, it's a local team thing. I live 2,500 miles from the town in which I grew up, I'm far out of state, but I still have my Buckeyes to root for and to help keep me tied with the place I grew up. Think about it, many US states are larger than England. Given the herterogenous nature of American culture and the relative lack of convenient national rivals, it only makes sense that collegiate sports, which are strongly identified with specific states, are followed with such devotion. England can have sporting rivalries with Scottland or Wales, or Germany, or Italy, or France, or Spain. It's possible to build a season out of the national teams. The US has only two other countries (Canada and Mexico) that are close enough for a national competition. A two game season just doesn't have anything interesting in it. Plus, someone in California just doesn't feel a connection to Boston or Dallas. College teams allow a connection to "home" that a national US team just doesn't have. Even the pro teams don't represent "home" as they swap players all the time and may not have a single starting player from the state in which they're located.
ZV