Ok, cool your jets. Mea culpa for not catching the hint in your first sentence that you were referring to University of Michigan students. Although at the end you do make a comparison to California public schools, which do not require Profile, to support your contention that the Profile requirement at a school could discourage students from applying under the impression that such a requirement would result in less need-based financial aid. Maybe this would be the case at California public schools, which have a comparatively generous financing mechanism for in-state students, but the fact that submitting Profile is part of the aid process should not be viewed as a negative. Many schools that require Profile are generous with institutional need-based aid, much more so on average than schools that only require FAFSA. For instance, a student from a low income family living in Pennsylvania who was accepted at both Penn State (FAFSA only) and Swarthmore (Profile required) would get far more aid from Swarthmore and very likely have a far less net cost there, even if moderate additional assets were reported on Profile (equity in a primary home, for example). Should such a student not bother to apply to Swarthmore because of an apprehension about the Profile requirement? No.
I’m happy to have a respectful, and spirited, discussion with you and anyone else regarding college financial aid or anything else covered by a CC forum. But I emphasize the word respectful. Hashing out these issues can lead to increased knowledge for anyone who cares to participate. Snarky attitudes generally either lead to a reply in kind or less participation, neither of which is desired.