That’s an interesting read, and you could have very well hit the mark on this. The way I like to interpret it, though, is that the “Sky Castle” symbolizes its inhabitants’ pipe dream that inevitably crashes down, just as it did for all the participants in the Varsity Blues. So much work and scheming and mental anguish went into building the Sky Castle, yet in an instant, it blew out of the blue sky, leaving nothing but emptiness and meaninglessness.