Housing Market Rescue Program

So the top limit on the "Making Home Affordable" plan is $729,750.  Now I understand that if you make that too low you largely leave Florida and California out, but...so what?  They "benefited" the most from the bubble, I'd expect they'd have to suffer the most on the way down.  For every 1 home you help at that rate you could help 5 homeowners in reasonable sized homes in Dallas.

Does it not make sense to start at the cheapest homes and work your way up?  I suppose given how screwed California is, you have to help them out somehow.