Could it be that the dogs are really obedient however they have low thresholds in certain situations?
I think raising the requirement for the obedience level is sort of unfair that is of course if you are basing it on certificates or actual documentation. My reason? Because while I took obedience lessons back in the late 80s, I did not take any classes for the dogs I have now and I don't plan to do so. So that school would be crossed off my list.
Perhaps the class is too big or perhaps the obedience/learning levels of each handler/dog team are not equal enough? Our instructors switch the dogs around so that all the dogs are on a equal curve. And we've had one dog go out because the majority of the class was moving forward and they were not progressing and another dog come in from another class with an equal learning curve. Our class just seems to be learning at a fast rate and yes, we have a dog go out of control everyone now and then. Our instructor knows the difference between a stressed dog and a dog that just want to blow you off.
If you run the class with an iron fist, then agility isn't going to be fun anymore IMHO. I remember the main reason I wanted to do agility and thats the bonding fun experience with the dog(s) on the course in a positive light. And yeah, I want to get some Q's too! I'd be lying if I didn't say that.
Sure, I understand why they want to increase the requirement to be fair to others (IOW, all the monetary return value) but you are also screwing over the potential of other students like myself with no paperwork -if that is the case.
In the end, I am glad that I read this forum prior to starting agility. When one of the trainers cited that you had to break some of the obedience behaviors taught your dog in order to do agility, I am glad that I started to back off on my dog. At the first day of class, the instructor pointed out what of training/control was required in agility and it was not to be confused with obedience training. She stressed that heavily. You can see the differences with dogs with strict obedience handling - most of the time they think they are in work mode and don't know how to have fun.
Ever been to an agility trial held by an obedience club? The atmosphere is sterile and tense and the dogs are zombies as compared to a Kennel club which is lively and the atmosphere is alive.