This was a long thread to read on a Monday but one I enjoyed reading nonetheless.
Here are some of my OPNIONS about all this in an as objective of a way as I can present.
1) Why aren't people drawn to join, as 'hear the calling' as it was put?
Well, there is a thing in the military that everyone who serves has agreed to - unlimited liability. Not a lot of people are okay with that. They value their lifes and in a psycology sense, is a heathy level of narcissism. It's very hard for people to understand that you may be called to do something that has a chance of you losing your life. To the OP, I suppose if we eliminated that, then more people would join too. I consider that as always an extreme fact of why people do not join. Here's a nice article on this topic:
http://www.montrealgazette.com/news/Soldiers+have+unique+take+liability/6877609/story.html
2) Why was there an increase of applicants during A-stan?
As was illustrated before, Canadians historically 'answer the call' in times of war. WW1 and WW2 are great examples of that point and many people answer the call. Not everyone joins 'b/c they want to do their country proud'. You see in Hollywood of Americans enlisting b/c they wanted the glory of going to war. Again in this past war, people flocked to the RCs just for a chance to go over and 'do the army thing'. Now that we're not, many people are getting out due to not getting a chance to get on the bandwagon. It's like they believe the only thing in the army is shooting weapons at the enemy, throwing grenades, and being GI Joe. No chance of war so they want nothing to do with this. These are the people who cannot handle 'bossy superiors who (in their view) have no clue what they are doing. They whine about being kept after 1500. They groan about having LDA removed or decreased though they have dodged every field exercize in the last two years. Yes, some of these people may be 'more intelligent' in booksmarts than I. They may have scored greater on the CFAT or be able to lap me twice on a 10km run. Are these people necessarily better than me as a soldier? That is a subjective opinion but many of them likely think so.
3) Woud having a more 'intelligent' recruiting pool to choose from be of greater benefit to the CAF?
I suppose, logically speaking, yeah. On paper that makes sense. However, first you have to define 'intelligence'. If by meaning 'book smarts' then no. You can be all kinds of book smarts but have a crappy attitude or one that gives up easily. How about 'strength' smarts? Again, it's the ability to hunk'er down and go with it mentality that I find is the most useful. People who have control in their lives are greater fireteam partners than those who are an administrative burden.
I find that today's generation (yes, I am in it too) are an entitled generation that must have lots handed to them for little to no work. Marks, grades, fitness/weight/diet, looks, finances, equity, etc - all are given for little to no effort put it. I find our generation largely is the blue-participation-ribbon-winning, pat-on-the-head, outstanding-job-for-doing-nothing group of people that if we do not achieve the level we desire we assume it's the other party that is wrong or broken or faulty. It is now the rare case that you find the people who don't get 100% on the test or fail the exam or do not meet the standards that go 'hey, the only person to blame is myself. I need to work harder (or continue working towards) in order to reach my goal.' I read a great article lately (can't remember where or when) that talked about that exact same concept. You have the 'kids who did the best at everything due to being given to them' and the 'kids who know what hard work is'. I would much rather have the latter person as my fireteam partner. They likely will stick around when the going gets tough rather than 'peace out' when they become challenged or bored. It's usually the former group of people that see themselves as above s*** taskings and who produce little effort.
I have another 15yrs on this contract (with another 19 after that family pending) and I know I'll be at the end of my career with the others who never had a sense of entitlement, who did the crap taskings with me, bail out water from a flooding trech with me and was always there to help me fold cam nets (for the 10th time that week). Do those people need to have a 3.8 GPA? Nope. Some of my most cherished friends in the military were not booksmart, but I would trust the life of my family unto them.
So to the OP, when you say 'Would the military not benefit from a larger pool of intelligent/smart/educated/whatever applicants?' I would say no. As an NCM (yes, could be different than the officer world) I do not judge your CF-member capability based on how well you can do on a test or spit out an essay. I measure you on whether or not you are humble, dedicated, wise (very different from smart), trustworthy, and capable. No university in Canada can measure that for me. No test can determine your suitability. No application can determine if you have my back when the fit hits the shan. If people are dissuaded from a career in the military b/c of a long wait time, then I am fine with that. I will gladly take the next chap who has dedicated 1yr+ of his life to reaching his goal.