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Can't argue that at all.  "Win or go home" is far more compelling than "win, lose, win, lose, lose, lose, okay now go home."
That said, I think you can build drama in those best-of series.  Starting with shorter series makes the wildcard teams blow their better pitchers and not have enough time to re-set their rotations before the next round.  But keeping the next round as a best-of-five favors the worse team.  Best of seven, the better team SHOULD win.  Best of five?  It's easier to get lucky.
So you can keep some compelling storylines as they progress. Because the best of three could be done in three days you could keep some tension there as well.
I dunno - I'd rather have the buildup of the Divisional series while the wildcard is going on, and have that work like a Sweet 16. "The winner gets the right to play the well-rested Yankees, and have their fourth starter against CC Sabathia..."
It builds more david vs. goliath mystique, which is what's fun about March Madness.  And you can get current storylines and pump upcoming storylines.
Baseball will never compete with the one-and-done juice of March Madness or the NFL playoffs, but they can do better.
~G