i personally agree the distance thing is stupid. i think the solution is to have sims recruit locally - i know that is sort of rail's pitch, but it makes a lot of sense. its retarded that humans leaving an area completely wipes out the competition in that area from that school - sims spread their effort around the whole country/world. that is, to me, the real problem.
i do think it is smart to have sims bad at everything. as anybody who has tried will attest - it is extremely difficult to maintain a steady 12 man conference. why? the guys at the bottom almost always get fed up. i honestly think a 300 person d1 would be a disaster (assuming they were all that way - just one would be sweet), because only 20% of the people could make the NT, instead of 35% or whatever it is today.
also, it makes young bad coaches feel better, when they are 10-17, with 9 wins over sims, instead of 2-25 or something. it may be superficial, because you still are at the very bottom of humans - but hey, humans are superficial beings (at least to some extent). if i made my own HD, i would not allow worlds to be as large as they are in HD today, i would cut d3 and maybe even d1 in half and if you wanted a team in particular, you could pick one of the worlds that had the team.