The current system has not been updated since a long time (90s).
However, the quality of American prospects has significantly increased. With the increase in foreign players, there is less and less room in a 16-team league. I think USDP is no longer really suitable and desirable.
USHL could open a league in the northeast region with no problem. This is the heart of American hockey.
On the contrary, more players could play near their parents (all those from the North-East, more numerous than those from the Lakes).
As for the MN level, I regularly see players who are not very strong at more than 3 points per game.
Well, knowing you, you will surely find arguments to say that I am wrong and that you are right as usual.