I fundamentally agree, but it's a tad more complicated than you think.
Let's assume, for example, that the SMALL handful of prominent developmental programs statewide produce MAYBE 30 D-I or D-II caliber student-athletes a year. Let's assume (incorrectly, I might add) that ALL of them decide to matriculate in SC. Then, divide those among all the programs in-state.
Now, drill deeper.
Let's say the D-I programs peel off the best 10-15 players. That leaves a much smaller number from te original group, plus any "unidentified" high school athletes, for ALL of the lower-division programs. So, where do those coaches look for players?
Answer: It's darn tough to attract high-quality student-athletes from out-of-state (much less out-of-region) to our lower-division schools. Which is why many ambitious college coaches look overseas for kids who'd die for an underwritten college education and a chance to play sports ANYWHERE.
Not saying I like it. Just saying, I see why it happens.
