The wave around only pays off when there are frequent enough cautions and fast enough tire wear to get the lapped cars back on cycle. It is by no means a systemic problem.
Near the end of races, you can all but guarantee frequent cautions. There are times where it can be a risk, but it seems that it lets way too many cars back on the lead lap far too often. I've said it here before: I used to be on the edge of my seat, hoping for a caution when my driver was about to be lapped. Now, I hardly care. I know that the Lucky Dogs and wave arounds will get him back in contention before too long. I've no problem with going back to the old system of the lapped down cars lining up ahead of the leaders if they fail to pit. It was rarely an issue.