I would say that with the current admissions timeline the whole process negatively impacts ED choices for the applicants that don’t get selected. Perhaps the whole process should be shifted by 3-6 months so that academies get their best of the best candidates and everyone else can apply to ED where they want without the undue stress.The benefit is that the Service Academies gain a "shot" at more outstanding candidates who otherwise would not have known of the opportunity.
From almost the earliest founding of our academies, the NATION chose to try to get some geographic diversity which is one of the reasons for the Congressional nomination system. It would be fabulous if somehow the Academies could know in advance which 1200 or so people they wanted and ONLY send them an immediate LOA so that no other potential applicants would get their feelings hurt by being rejected. Of course there would be constant loud cries of objection as to why some were picked and others were not which is shockingly similar to what we hear under this system where applicants SELF-SELECT to APPLY to the academies.
In my and many other people's opinions, the opportunity is incredible and it would be nice if it "sold itself" but it turns out that if we did not "awareness raising", we might have a much smaller and less diverse applicant base and leave many VERY qualified folks who never hear or consider the SAs to go to "Whatsamatta U" or other institution. From my personal experience of over three decades in uniform, the Navy and nation would not be well served by keeping our applicant base low. Clearly your vast experience is different so we'll have to agree to disagree.