they don't (to my knowledge) really factor in potential, and they are by and large window dressing. That said, I feel a lot happier when so and so player is projected to be able to play at or above the level I expect my team to perform at...

It says that about all my recruits so I'm always wondering how to get 12 all americans on the floor at the same time

They have nothing to do with potential.  They are probably intended to be an indication of what level of ball the recruit "thinks" he's going to play and the leve lof other teams recruiting him.  My guess is that you were supposed to be able to review those statements and make some kind of guess whether a higher division team is scouting or recruiting a player.  I've sometimes thought I could see a coherent change, over several messages, while I was pulling a guy down.  I now believe that it is worse to read those messages than not.  They are more obfuscatory than helpful.

I've found these statements give you a "ballpark" range at which the player would be useful so you know whether or not you are recruiting a player of the correct level. It seems to be based upon current talent and the idea that he will improve at least some over his career.

Let's be honest, anyone who knows how to recruit, doesnt care about those statements.  Because if your are doing scouting trips it means you have some of the players potentials.  And if you know the players potential, you should be able to figure out on your own what kind of player he projects to.

I have been keeping a log of these statements for several seasons now, just to see if it gives any indication of e.g. how high a high-high might be.  I seriously doubt it does, but just in case...  

I use the following numbering system:  

1) Overall, I think he has the potential to blossom into a Division III contributor.
2) Overall, I think with some work, he'll be a solid Division III player.
3) Overall, I think he has great upside, but probably not good enough to play DII ball.
4) Overall, I think he's got what it takes to be a DIII All-American before all is said and done. He could succeed at DII with some work, maybe a redshirt season.
5) Overall, I think with some work, he'll be a decent Division II player - although he would probably sign with the right DIII school - I don't think there's anyway he'll see an offer from a DI school.
6) Overall, I think he'll be a solid Division II player. Can't see many of the big boys up in D1 going after him.
7) Overall, I think he's got what it takes to be a DII All-American before all is said and done. He could contribute at DI with a maybe a redshirt season under his belt.

That is probably all the messages you might see from a player recruitable from D3 (but if anyone has ever recruited an "8", let me know!).  If they are in my D2 pool, I think it might have something to do with the timing with which a player would drop down, e.g. a "6" would drop several cycles later than a "5".  However, usually I see these messages after they are already in my D3 pool or I am pulling them down, so I don't really know when they would have dropped down.  

given that these messages pre-date potential, and nothing like this (player rankings, etc) was updated for potential, there is virtually 0 chance these messages relate to potential in any way. i also believe they pre-date drop downs but i am not sure, that is before my time. long story short, its window dressing and should be ignored.

I think the last credible list I've seen that related scouting messages to potential was before the last huge seble patch a year or 2 ago.  Maybe I missed it, and maybe it didn't change, but has there been a newer one?