I agree with you 100%. No, maybe 80%. I agree that PG does nothing for recruiting for 80% of players. I do think, though, that competing in summer tournaments against good players is helpful for college players at any level, even at D3s, if you want actual playing time when you get to college. If you have faced future P5 pitching and done well, it gives you confidence. If all tournaments were strictly stratified by perceived ability (i.e. college commitments), that wouldn't happen.
Also, this post wasn't about PG, as such. My son's travel teams played mostly in non-PG tournaments, and they all had the same frustrations. The smaller tournaments were often worse as far as organization goes.