It's been a huge deal for at least 5 years now.
Go back to 2010. We have no overall ratings, but we know that Kansas was the top overall seed, UK 2nd, Duke 3rd, and Syracuse 4th. The regionals were Syracuse, St. Louis, Houston, and Salt Lake.
Kansas got St Louis, UK got next closest, Syracuse, then Duke to Houston, and Syracuse to SLC.
The 2 seeds were West Virginia, Ohio State, Kansas State, and Villanova, probably in that order. West Virginia went to Syracuse, Ohio State to St. Louis, despite the fact that they were the best of the 2 seeds, and those regions already had the best of the one seeds.
2012 through 2014, we do have overall ratings for teams, 1-68. 2012 top 8 was UK, Syracuse, UNC, and Mich St as 1 seeds, then Kansas, Duke, Ohio State, and Missouri as the 2 seeds, with the regionals in Boston, Atlanta, St. Louis, and Phoenix. They again went purely on geography, ignoring the S Curve- UK got Atlanta, but they also sent Duke, who they rated as the 2nd best 2 seed, to that region, and they sent the last of the one seeds and the last of the 2 seeds out west.
It's a really simple formula they've been using. Stupid, but simple. Rate the teams 1-68. Break them into seed lines, 1-16. Start at the top, and send teams to the closest available regional. You just go down the seed line, send the team wherever is closest (without breaking rules about conference rematches, or having multiple teams from the same conference as top 4 seeds in the same region), and pay 0 attention to whether a a region is getting all the top teams on each seed line, or all of the worst. All that matters is that each region gets one team from each seed line.
IF they continue to follow that procedure, it's going to be almost impossible for UK to not have either Wisconsin or Virginia as its 2 seed (or Duke, if they lose in the ACC Tourney and drop from a 1). They'll face a sh**load of deserved criticism, but it's no different than what they've been doing.
Eventually, they're going to have to adjust this, because the distribution of quality basketball schools almost guarantees that the Midwest Region will be killer, every year, while the West Region is almost always going to be significantly weaker. That's a dumb way to run a tournament. However, we don't know if they'll start to adjust it this year (as some NCAA people have implied), or continue doing it the same way (as the selection committee chairman implied).