Yeah, that part is puzzling. And the idea that the coaching staff isn't responsible for it is laughable. Last time I checked, they decide who's on the team and who isn't.
You are correct. But I think it's beneficial for the second stringers to know that they can lose their positions if they don't perform better when they get playing time.
This would suggest that Schmidt's recruits are better than the backups who were recruited by the previous regime (14 points given up in the 3rd vs. 7 points given up in the 4th).
I am betting that there were a lot of 3rd string and lower players on the field during the second half. There is no way our depth is worse in Schmidt's second year. I think Schmidt is prioritizing development over blowouts and I think that is a good thing.