Yeah I think there needs to be a local component, even at D1. Look at a middle level BCS school and how many local players they have. Like a Georgia or a Texas Tech....I just picked those randomly.
Tech = 14 players, 10 very local 8 from Texas, 1 New Mexico, 1 Kansas
Then 1 from Yugoslavia
The other 3 are from Florida, Mississippi and Maryland.
Georgia 16 players, 11 from Georgia, 1 TN, 1 FL, 1 KY and 1 from Europe. Not a national power.
Another random pick in ym mind was Oregon
15 players, 5 from Oregon and Washington, 6 from IL/WI/MI and 4 from AL/MS/LA, so they are more national, but still pretty regional.