i thin what you are saying bhansalid is pretty reasonable. i think there is also a huge difference in top, middle, and low bcs. top and middle teams have huge advantages over mid majors, true. low bcs teams often have low prestige - lower than solid mid majors - although they do get money to compensate. however, they also have a bunch of top and middle tier bcs teams in conference, who have huge prestige advantages over them, which makes it very hard to win conference games. so when guys walk into that spot, its usually a lot harder to make the NT than it was at their old school, which makes it hard to get prestige up, to the point where they do have major advantages over mid majors. i think that C -> B- move at a BCS school is actually harder than at a mid major.
that said, i think your points are all pretty reasonable. baseline and conference prestige have already been lessened recently, by seble, making it even harder for those low BCS teams to build up, and reducing the advantages for BCS teams in general - albeit only slightly, when you get into that upper tier. so thats a start. i think there is more to do, and i can see eliminating some terrible W/L bcs teams, but i'd rather see the playing field leveled in organic fashion.