Obama's arguments here remind me of Noam Chomsky's thoughts on sports: Sports keeps people from worrying about things that matter to their lives that they might have some idea of doing something about. And in fact it’s striking to see the intelligence that’s used by ordinary people in sports [as opposed to political and social issues]. So much chatter to distract us from the important issues of the day.
For Noam Chomsky, like other radical leftists, the idea that the working class is deceived and distracted is part of an anti-cognitive-dissonance package to explain why the supposedly-oppressed masses fail to share his political opinions. Obama isn't nearly as extreme as Chomsky politically, but come from the same sort of intellectual heritage.
This has basically been the totalitarian promise for a couple of centuries now.