Waugh was joined by former Test stars Allan Border and Brad Haddin, who both agreed Australia's domestic competition had faltered of late and resulted in a much smaller pool of applicants for the Baggy Green.
"It's (Sheffield Shield) the traditional breeding ground for the Australian team," Border said.
"When that's strong, the Aussie team looks after itself.
"I think it's been treated like a glorified practice match - experimenting with balls, styles of play, pitches and different experiments. I think we need to have a look at it and how it's played."
South African great Shaun Pollock, who appeared in a live interview on the show, agreed the Shield competition had not produced the standard of fast bowling expected from Australia.
"If Joe Mennie was your leading wicket-taker last year, you've got to be worried at the standard of batting," Pollock said.
"After this week, you can almost treat the pink ball game as an exhibition game."
After discussing Australia's crisis at length, host Brendon Julian asked Border and Haddin to name their respective sides for the crucial Adelaide Test starting later in the month.
"I don't want to panic too much, but I think a new injection of players is needed," Border said.
"I've heard good things about Kurtis Patterson, so I'll put him in. I also think Callum Ferguson deserves to play another Test.
Border suggested recalling Victorian wicketkeeper-batsman Matthew Wade to the side to replace top gloveman Peter Nevill.
"I've put Matty Wade in because I think we need some mongrel in that cricket team - it's been sadly lacking in my opinion. We just haven't seen that Aussie mongrel we come to see."
Border also included young left-arm seamer Jason Behrendorff in the side in replacement for Joe Mennie.
Brad Haddin also opted to bring Patterson in his proposed eleven, but chose to have both Wade and Nevill in the side with Wade at number six, purely as a batsman.
"I like Matty Wade because he brings that character - I actually think he can play a big role in stopping those collapses, he loves a contest."
Haddin opted to bring in Western Australian batsman Cameron Bancroft into the side.
Haddin concluded saying while his proposed eleven lacked experience, they were the only ones in his eyes.
"I think they'll take a bit of time, but nobody else is putting more pressure on."