I am not sure there should be an argument here. R Soloveitchik’s goals for YU was to produce a large number of minimally qualified Rabbis who can be useful to the large number of Jewish communities of minimal observance. He specifically compares this with the Litvishe yeshiva world he came from. His goal did not seem to be to raise a small number of outstanding Talmidei Chachamim. As far as I know, R Kotler was NOT looking to place his students in such environment.
As to such rabbis in remote communities, other Talmidei Chachamim valued them. For example, when Ner Yisroel was sending bochurim to such community to fundraise during chol hamoed, some asked R Ruderman whether bochurim were allowed to shave so that they do not look disheveled. He answered – if the local Rav shaves on chol hamoed, they bochurim _should_ shave so that it does not look like they are trying to be “frummer” than local Rav.