I personally believe there is not a huge difference in talent between D2, D3, and NAIA. There is a big difference between SEC, ACC, some Big 10 schools, vs most of your mid majors.

I see how it could be difficult for many parents/players to understand where they fit in.

Daughter plays for the Bandits. There are a couple of players on her team that are going to play for D1 mid major schools. There are multiple players on my daughters high school team that are going to D2 and NAIA schools. Those D2 and NAIA playes are every bit as good as the a couple of the mid major players.