There is probably a pretty high rate of flame out from the 2 and 3 stars too. You just don't notice it as much because there are more of them, and you aren't expecting them to be All-Americans. I doubt it really has anything to do with star ratings.
On the 25 rule, I see where people would make an argument that it could help Ole Miss or MSU, but the way I see it, it helps USM and Memphis and other CUSA schools WAY more than it helps us. Every year there are grade risk players that each of us, and other SEC schools, sign thinking that worst case scenario, they'll place them in a Juco, and if they pull a miracle, then you get that player. Now those players will sign with the local CUSA schools, or maybe some of the ACC or Big 12 schools nearby, and many of them will pull the miracles and get in.
I really hate Mike Slive, can't reiterate that enough, and I see this and the 28 rule before it as completely unnecessary. All it does is put our conference at a competitive disadvantage.