Orange County is roughly four times the size (population) of the County I reside in (Gwinnett County, GA). Yet I'd wager my County produces (easily) twice the number of BCS/P5 prospects coming out of HS, and that is just one of 3-4 Counties on the North side of Atlanta.
The PAC 12 definitely has a lot of population within its footprint, and they have the luxury of being the only major CFB Conference on top of that footprint. That doesn't necessarily mean just because they have the numbers, they also have the talent.
It's kind of the same argument BYU pollyannas make when they boast about historical W-L record. The volume is there, just not a lot of substance.