I can say two things.
You can look at it from a graduate student's perspective; there are numerous reasons why a graduate student would not really want to move from the place where they're currently situated, due to their caregiving responsibilities, family responsibilities and other financial responsibilities. Even if they have the excellence, they may not necessarily be able to move to another institution and be part of a vibrant culture of research.
How do you recognize those talents and continue to support their success stories? I think the current system, unfortunately, is not doing it. I think we have myths about locations and places. The system we are proposing would really allow us to make the whole system much more accessible for graduate students, regardless of their location, regardless of their affiliation with a particular institution.
We need to foster a culture of excellence.