I don't think you can really judge the health of mod from these results. On any given saturday club race in seattle, we've got 4-6 people that are within a lap of Kody, and 1-2 laps up on the TQ record in 17.5. But most of us don't do big races. And that nats track looks brutal, the kind of thing that really brings the cream to the top.
EDIT: That being said, we'll see what Kody does to the mod TC record when he gets back.
-Mike