Not at all rambling, miliosr. I think every point you raise is crucial.
1. Programming the classics -- I'm sure there are many people (especially critics) who want more "adventurous programming." Even the Kirov is now doing Neumeier, Forsythe and Eifman. For years and years and YEARS people chastised ABT for not having a house choreographer, even though the company really truly tried (it seemed, at least) to encourage new works by company members, other young choreographers (never forgetting what seemed like dozens of ballets by Glen Tetley

) When the company moved into the Met -- a very double-edged sword, for many reasons (problems filling the house, problems in erosion of classical style, especially diminution of linking steps and other classical niceties, because such niceties don't "read" in that house), there was a big push to find ANY full-length ballet. That's when what I call the faux classics ("Merry Widow," "Snow Maiden," etc.) came in.
2. Re today's substandard classics. Rewind tape. When the board brought in Baryshnikov, one of the specific charges they made to him was to raise the standards of classical dancing, and the classical repertory, which, I would argue, he did. I didn't love the stripped down "Nutcracker" and what was often called the Broadway "Don Q," but -- especially in retrospect! -- they were honest productions. And the "Sleeping Beauty" (MacMillan), and his "Giselle" (which is pretty much what the company has today) and "Swan Lake" were serious productions. Then Baryshnikov left and pulled his productions -- and several of the Kirovians on staff -- the new Artistic Director was a nondancer -- an impresario -- and the situation changed.
miliosr asked how people viewed Baryshnikov's programming of modern dance works. Mixed. They weren't sell-outs. Many critics raved -- he was saving ballet,l which had become old and stale and really really boring, and needed to be shaken up (not an untrue statement, but some argued that the shaking up, in the past, had always come from within the classical tradition.) Some complained that he was getting things he wanted to dance, rather than building a repertory. I felt that ABT had become a bifurcated company. When the company toured, at least, it would dance triple bills during the week, always danced by the same very small group of dancers, and then do The Weekend Rep (always a full-length ballet) over the weekend. This produced a bifurcated audience, too. Baryshnikov said in his Charlie Rose interview last spring that he brought in these ballets because he realized the company didn't have a School. Good point. I don't remember it being made at the time. I remember more how ballet was dead and had to turn to modern dance for choreographers.
When ABT started its City Center seasons, one of the early announcements said that a reason for this was so that the company could dance its core repertory (the Tudor, Robbins, DeMille, early Feld, etc. pieces) and a few are programmed each year, but that hasn't been the focus.
As for what the audience wants -- really truly, if first-rate productions of the classics were substituted for what is there now, would people complain? If they were truly fine productions, brilliantly cast and staged? I doubt it.
The eye and taste of an audience can be educated. Balanchine did that. I'll end THIS long post with a story. A year or two ago, the Kirov brought what I thought was a truly terrible "Giselle." very miscast (a long-legged danseur noble in the peasant pas de deux; two very young dancers who apparently had never been told "Giselle's" story in the leading roles, etc.) The audience seemed to love it -- lots of screams whenever the guy jumped high. which was about every six seconds. "Whoa! Whoa! WHOOOOOOOOOOOOOOOH." I spoke to a Russian friend at intermission. She looked glum. "This is a roadshow cast," she said. "The Russian audience wouldn't stand for this."
Arlene Croce's famous "ballet is only good when it is great," is not a bad mantra

Where does this lead ABT? Fix the classics. Then worry about the adventurous part.
I'd like to comment on Helene's excellent point about the importance of the corps -- not as a group of junior medal winners, but as a CORPS with a SCHOOL -- but that will have to wait until later