i don't think it's the best answer to the problem. the drunk coach from west virginia had a better solution, which was eliminate about half the D1 teams, which would result in (a) more power conference teams going to the tourney (which is really the "complaint") and (b) make the regular season more enjoyable/better because you'd have a limited pool of teams to play.
Yes, this is really a big part of the problem (Kietz has been advocating this as well).
But small schools are still going to continue with the process of going D1 and joining crappy low-major leagues. I'm sure getting their piece of the pie from the crappy league for their winner getting a bid as a 15/16 seed is still a lot more $$s than whatever they'd get for making the D2 tournament. And if the NCAA gives both regular season champs AND conference tournament champs bids with expansion, that is only going to get worse, not better.
And overall I'm fine with the change, I don't think it will be terrible at all. I do hope most of the play-in games are match-ups between mid majors and BCS leagues. For example from this year; it would be less appealing to do a match-up between Arizona and North Carolina both having subpar years, but more interesting to do Wichita State against Arizona. IMO most of those first 32 games should be those type of match-ups for the chance to play against one of the top 32 teams that get byes.
