I'd agree with you Mike if D3 was presented as a Learning ground and coaches had to move up after four seasons. But if they did this, WOW would lose money since some owners really like D3. Gamers found and will always find the weaknesses in a system. Gamers like Only, QB, Piman, to name a few, were already well aware of the importance of location before 3.0. They are not sentimental or anything, they want to win so they get to a place where they do not get any competition for D2 pulldowns in 2.0 and to get top D3 recruits easily... Now, they have more to work with, you give them D1 players where they are not challenged or they find a place where they are not challenged and put together teams that will discouraged any new owners... A guy Learning the game, pretty happy with his recruiting after 4 years will get destroyed by a 700 overall D3 (i saw one) team that is more like a D1 team... 12 players all good, all ready to destroy the fun of anybody. Location is more important in D3 than it was before, first because you can't scout as efficiently as before, second because you get D1 leftovers and distance is important, so if your state is almost empty, you get a lot of talent or a lot of expected talent... Third, it's tougher to recruit all over the country than it was in 2.0 because you haven't discovered all the players, you haven't scouted all the players away from campus etc.
If I was not seeing 650 to 700 overall teams, I'd say it's working as intented... It makes D3 really boring because it's a matter of location rather than skills and recruiting has become a waiting job til the last day...