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This issue is much deeper than just 'injuries make my players suck'. Yes, injuries balance talent within the league and it is a necessary part of the game. Think of 'talent' as more of a commodity. If too much talent is infused into the league (i.e. talent in is greater than talent out), the game becomes Nintendo baseball. Conversely, if more talent leaves than is infused, then everyone sucks and it is no fun. Talent must be relatively zero-sum, otherwise you eventually get one of the two scenarios above.
Point being, the game is balancing the talent coming in with injuries and talent drops. If the league has a lot of new talent coming in through the draft or international player discovery, then talent hits from injury (or otherwise) will be severe. The commish must take this into account.
Also, there is a setting that makes talent changes less severe in general. The commish has control of this too.
Like Curtis, I also do not want to argue the point. It does work as intended and is necessary.
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