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Mind boggling isn't it? Why not at least give teams with a proven track record regarding attendance with a good chance of being in the dance the sites? Even if Arkansas gets in, they will not draw anyone from 190 miles away. Last year their average attendance was 1886 per game.
No not mind boggling at all.
Just because a team gets good attendance does not mean that lots of fans will show up to watch other teams. Also, there may be poor attendance for a local team because it stinks, but there might be folks who would go to watch tourney competition.
The NCAA also has an incentive in bringing the game to different parts of the country and trying to generate interest and attention.