Not everyone gets a Div I look from a top BCS-contender school. If a prospective student-athlete struggled with grades or injury in high school they may get passed over in such a competitive market (remember, only 3% of athletes receive an athletic scholarship).
Junior college may not have the bright lights but it is a solid option, and sometimes the only options for certain student-athletes. Spending a year or two at the JuCo level may allow the student-athlete to develop good study habits and prove recovery from injury.
Couple examples of the JuCo route - Aaron Rogers and Cam Newton. Things worked out okay for them.