I think conversations at the region meetings about only taking students that are prepared is completely appropriate. I think all directors should put their students through a "pass off" type situation before the audition to make sure they are prepared and will have a good experience, and to save the rank from telling the student what the director should have.
Don't take it out on the student because the director put them in a bad situation. Chances are if they showed up to the audition and are hacking through it, their director isn't working with them much or at all, and they are there of their own volition. We should give those students as much courtesy as possible to encourage them to keep trying.