Naturally some individual species are specific to localised areas - this was a major piece of evidence for Darwin when he was formulating his theory of evolution. But you seem to assume under your model that entire classes were once limited to small regions and thus were not fossilised. Lets look at your model again:
mindspawn writes:
I do believe fossils are layered according to proliferation, during periods that life was suitable to arthropods they proliferated. Next came amphibians. Then reptiles. Then mammals. Just because a certain type proliferated doesn't mean the others weren't there, they just were not common.
Looking at some of my local (ie Australian) geology:
In the mid Proterozoic rocks here I can only find fossils of stromatolites. Your claim seems to be that nearly all other genera existed but were somehow not fossilised.
I move up the sequence a little to late Proterozoic, I'm still seeing stromatilites but I also see Ediacara. Nothing else.
Above this is the Cambrian where I start seeing arthropods as well as stromatolites. Ediacaran fossils have also been reported in the Cambrian. However, no fossils of amphibians, reptiles, birds, mammals etc.
By the time we get to Ordovician rocks in eastern Australia we start seeing verterbrates - jawless fishes as well as arthropods, etc, etc. No marine mammals, no marine reptiles, no marine amphibians and no marine birds for some reason.
I could go on, but you know the pattern. In every succeeding geological epoch we see, not just new species, but often new genera, plus nearly always examples of the pre existing genera. Isn't it a much more elegant solution to this observation to admit that the over time new species and genera are appearing rather than to try and come up with some convoluted theory that genera start coming out of hiding for no apparent reason? It might be worth having a look at the cognitive dissonance thread.