jskenner, i think what you claim is true in theory. i'm not sure what the actual implementation is, but there obviously is a pretty big random factor. how do they do it? it seems you would look at every situation where multiple outcomes were possible, weight them based on ratings and settings, and roll the dice. but i agree, that alone doesn't really explain what we see. there are too many dice rolls, like you explained.
so, how do the outcomes get so severe? well, i think there have to be random factors generated for games, to create a more random environment. for example, the weight of HCA in each of the outcomes might have a starting value, like 10%. but, maybe at the start of the game, a random factor is applied to it, to allow it to jump to say 30%, or -5%?
also, i have went back and forth on the idea of season-long player random factors with a small random walk after each game. some guys just play so well some seasons, and some, so ******. for a 30 game season, it seems too long for some of the seasons our guys have (including the senior slumps). but, i am pretty skeptical WIS would do that, although, it seems to mimics reality better than not. there could also be game-long player random factors that are created to cause more random outcomes on the games.
also, consider how you might implement different offenses and defenses. it probably causes different equations to be used in a bunch of places. some might be situation specific (like when 2 players go for a rebound after a missed shot), or some could be player specific. anyway, i'm not sure you would actually go and make sets of equations for all the combinations, but one element of the equation might be, for example, on a steal formula, chance of a steal = ... + .1 * (defense is press) + .04 * (defense is man) + .02 * (defense is zone). i like this place as a place to insert random factors, such as, what factor in the range [.3-3] will we multiply all offense/defense weights by? or maybe have a range for rebounds, one for making shots, and one for everything else.
anyway, i really have no idea how WIS actually does it. but i can't imagine there is no random factor like one of the ones described above. not only from the outcomes, but from a design standpoint. if you were making a sim like this, to keep the users guessing, you would basically want small random factors everywhere - otherwise, it would be too deterministic, like the excel formulas you were talking about. people would figure it out too much, instead of building a "feel". from experience, i really feel WIS has them all over, most everything i've looked at in detail seems to have more variance than what you would expect without the random factors.
also, i wouldn't blame WIS for denying there is no "upset factor". i wouldn't even call them wrong. it depends how you look at it. it seems you could put all the equations used in one game together, into one big equation for the entire game, and factor out all the randomness into an upset factor, and call it an upset factor. but, i don't think WIS does it like that. they want a complicated upset factor that effects many aspects of the box score. so, its more likely there is a random factor to make a team rebound better/worse all game (or half), and a random factor to make teams shoot better/worse all game, etc. type of thing. if you were aware of those random factors, i really don't think you would call them upset factors. i don't think you would agree an upset factor existed, either. but, i would consider the two cases mathematically analogous, although the upset factor would likely be extremely complicated.