Okay so I have an idea about how recruits could be generated for each division and regions.
1. Recruits are generated like normal with all the ratings and such in tack. The big change comes from where they are placed throughout the country.
2. The United States is broken up into multiple regions to account for normal dispersement of recruits. (CA, OR, WA, AZ could be one section and TX, KS, NEB, MS could be another section) These could be changed around but the process is to get what is considered a regional base for recruits.
3. Multiple Factors goes into ranking each region for each Division 1,2 and 3 individually. Things like Major Winning and Losing records by teams in the region, NT berths, Sweet 16s, Final Fours/Championships could be apart of it. Also, you can include players that go onto the NBA through the draft as well to boost the region prestige.
4. When you rank the regions the region with the highest grade gets a better overall class of players that are then split up between the states involved.
The goal of this is to show how players get more involved with basketball when teams in the region are more successful. Now this would not mean that even though California's section sucks it would not have great players. This is a simple way of rewarding regions with a few extra good players each year for having winning programs in the area.
Would you not agree that local state colleges and even private ones have summer basketball camps and improve players around them as well as get them interested in basketball?
In the end it would hold recruit generation the same. The only difference is that the best region in the US would have a couple more of those 5 stars for D1 and such.
One last thing, each division would be separated and ranked by itself so D1 and D2 would not be combined but be calculated all by itself.