2) Given the more balanced distribution of talent at the college level (especially small schools & div II), NFL teams can get talented players later in the draft.
It really doesn't work that way. The number of viable players entering the NFL is no greater than it was thirty years ago. And most of those guys are still coming from BCS programs and being taken in the first three rounds.
EBF, I think you're wrong here. College coaches and programs at every level are doing a much better job of preparing kids for the pros than they used to. The complexity of the systems and quality of the coaches gets better every year, and will continue to get better. You are right that most of the elite players are coming from BCS programs and the first three rounds, but that majority shrinks every year.Look at the pro bowl rosters through the lens of your two criteria - half of the QBs were 6th round/undrafted (Romo, Hasselbeck, Brady), and Romo went to a small school, at RB half fall into one or the other - you have a 3rd rounder from Villanova (Westbrook), a 4th rounder (Barber), and undrafted (Parker), at WR, its 3 out of 8 - you have a small school 7th (Driver), a small school 3rd (Owens), and a 7th rounder (Housh)
I'm not saying it doesn't happen, but it's the exception and not the rule. I don't think that's changed at all in the past few years and I don't see it changing at all moving forward. The overwhelming majority of starting NFL RBs went to BCS schools and were taken in the first three rounds of the draft. I only count a handful of starters who don't fit both of those criteria (Rudi, Westbrook, Barber, Grant, Parker, and maybe Graham if you want to count him). All in all, that's a pretty small percentage. There seem to more late round/small school starters at WR than at RB, but the pattern still holds true. 15 of the top 20 WRs in my PPR league were first day draft picks. Some of those guys went to small schools (Owens, Curtis, Jennings), but they were early picks all the same. QB is a slightly different beast since it's a harder position to project and the bust rate is a little bit higher. I'm a little more open-minded towards late round QBs than I am WRs and RBs because the NFL seems to have a harder time evaluating QBs than they do WRs and RBs. Neverthless, for every Romo and Brady there are guys like Peyton, Roethlisberger, McNabb, and Palmer. 24 of 32 opening day starters were first day draft picks. It's the same story at TE. Gonzo, Witten, Shockey, Heap, Crumpler, Cooley, and Winslow were all first day draft picks. Gates is the only elite TE to "come out of nowhere." There are always going to be guys like Jerry Rice and Walter Payton coming out small schools. But for the most part, the prospect talent pool is monopolized by division one schools from BCS conferences. As long as those schools continue to have their pick of the litter, they're going to produce more pro players than their competitors. Most of those players who go on to successful careers will be taken on the first day of the draft.