Your analysis is fairly spot on. I would add, there is very little difference between the t2 schools and they know it. They also know their consumers, the law school applicants, don't realize there isn't much between those schools. Where they are located and their local reputation matters wayyyy more than rank for job outcomes. A student who went T2 outside of AZ will have a harder time getting a job in CA than a student who went T2 in CA.

What t2 schools are fighting for, is the students who balk at the price of full admission at a t1 school. They are fighting for these t1 or t14 students who have high expectations of success post law school in. They can invest a hundred grand now to get millions of donations over that person's career/in that person's will. They can also use that person to market outcomes to future students, not disclosing that to normal student will probably not have those outcomes.

They also are betting that these students will not take a year of law school for free and then transfer to a tier 1. Hence, they get perks normal students are not aware of to encourage them to stay.