Prepster, et al,
Some very good posts by you all. I really feel the same way and I spent a lot of time researching this issue as our son was recruited. One school that he gave great consideration to utilized this approach, which gave me great concern and I have a couple of friends whose sons ended up there. I think one of the indicators that you are in this "recycling" group is that you are offered a low scholarship...but it is no guarantee and parents and players should do their homework!
I think this situation I'm about to discuss is a little different...but I think some schools really need to rely on the JC recruiting route to be successful in athletics. A school local to me, San Jose State, used to utilize the JC route for football and had some very successful teams...once they changed their philosophy to HS players, they have really dropped. For a school like SJSU...it makes sense...even in baseball. I think the issue is when the incoming recruiting class is put into a situation of a tryout so to speak. That has got to be very frustrating.