It's geared for new coaches. Expecting someone coming in to have to recruit right away as the first thing they do in a world is not intuitive, and led to a lot of frustration. Now new coaches get to play some games and learn a little about what makes a good player before they start looking for players.
I understand and why veteran coaches don't like it, but the adjustment is pretty simple. Instead of looking for a team with a bunch of scholarships this season, look for teams that are loaded with seniors, so you have a big class next year. Or go straight to D2 after a season. This is pure speculation, but if it was my game, I would want to encourage people to move up to D1, and leave D3 as an introductory level, and D2 as an intermediary, or a career-rebuilder when you get fired from D1. Coaches parking in D3 is probably not an ideal situation, from a global perspective.