By forcing the last 8 AQ'ers to play the play-in game, you're basically saying '**** you' to the small conferences and kicking 4 of them out, so 4 more medicore BCS conference teams can get in.
That doesn't make the tournament better. it's obviously a complete joke to expect #1 seeded Kentucky or Kansas to play to VT and Illinois while the #2 seeded OSU plays Morgan State. Seeding is done primarily to ensure the top seeds earn thier rightful draw. Not to worry about whether a #14 should maybe have been a #13.
In the first quote above, you say that adding 4 "mediocre" BCS teams is somehow worse than adding 4 small conference champions. In the next quote, you say "Kentucky shouldn't have to play Illinois while OSU plays Morgan St.", implying that Illinois is a much better opponent. The two statements are contradictory. It can't be both, so which is it?
Just for fun, here are the lowest 4 RPIs among tournament teams last year (realtimerpi.com):
Robert Morris (23-11) (129); Lehigh (22-10) (152); Winthrop (17-13) (160); and Arkansas-Pine Bluff (17-15) (183)
Since there's truly no way of knowing who the "last 4 out" were last year, here are the 4 teams with the highest RPIs not to make the tournament last year:
Rhode Island (23-9) (40); Wichita St. (24-9) (43); UAB (23-8) (45); and Kent. St. (22-9) (47)
We both know that none of these four teams would've made the tournament. This is for illustrative purposes only. In reality, the four teams chosen would be even better than these, making my argument even stronger than it already is.
Since your main concern seems to be "making the tournament better", can you honestly say with a straight face that the AQ teams above, with an average record/RPI of 20-12 (156), make for a better tournament that the hypothetical at-large teams, with an average record/RPI of 23-9 (44)? Honestly?
(P.S. I don't care about the Kum ba yah, hold our hands and sing together, everyone gets a fair shot, attitude that's been granted towards the small conferences. You want a fair shot? Get better. The 16 seeds are what, 0-104 now vs. 1 seeds? The 15s are a robust 4-100 vs. 2s. A 12 seed has actually made it to the Elite Eight, and two 11s have made it to the Final Four. And we want to placate the 15s and 16s at the expense of the 12s and 11s? Unbelievable.)