I'm playing extensively on rookie level at the moment and that's the sense I get from the game now so I feel it does do that to a large degree now.
I'm not sure how to properly improve difficulty but I do agree that the CPU reacts to input rather than player movement which is flaw IMO.
As an example I might be double teamed in the corner and decide to pass out. I can tell from slow replays that the moment I press pass the CPU player immediately leaves and races to defend almost beating the ball there. This action happens a small moment before player movement would tip the defender off. In real life the doubler in the corner would probably stay there and another guy would rotate.
If anything, I experience more frustration with spacing, speed and distance covered by defenders than I prefer which I suppose might be reflected in the numbers since I haven't studied these behind the scenes boosts every body complains about.
I still feel the boosts are immaterial. With proper spacing and execution, they are kind of negated after some time and study. And contrary to popular opinion every CPU player doesn't play like Michael Jordan as some people claim although it's possible a lot of the time.
In the end, no matter how they change the way difficulty is represented people will complain if it's harder in any fashion.
The one main issue I have with 2K is that at least in current gen and before, you could customize the way a team plays with slider adjustments to conform a team to your playstyle rather conform your playstyle to that team. This also means you can make subpar teams play above their head and this is where a lot of people feel they get the shaft the most playing other users on line just like people complain about the hof CPU.
And to further extend that they want to be able to use the same playstyle on every difficulty level when you can't do that and be successful either. Shots and passes you can make on rookie won't go in or get through.
This also means that even with great skill, you probably shouldn't be able to take a team like the Bucks and expect to beat all the elite teams with it nearly every time set foot on the floor at the highest level.
As Mars eluded to earlier, hof level should be looked at as a tool to improve decision making. Better spacing, better shot selection, better defense and just better recognition in general and as a level to bring more refinement to your play than anything else and not necessarily be an "every day" mode to get the most enjoyment for your money for most people.