Not that offense isn't an issue, but I think you underestimate Iowa's geographic and demographic disadvantages.
Iowa has 2.7 million fewer people that WI, more urban centers with Green Bay, Madison, and Milwaukee, and when it comes to college football, it's the Badgers, then DIII. There is not 1 FCS or DII school in WI, which allows them to lock down the state (and is part of the reason the WIAC is easily the toughest DIII conference).
IN has twice the population of Iowa, and more urban centers and a denser population as well. They also have Notre Dame and a host of FCS schools to contend with too, so I'd agree that Iowa still has more going for it than Indiana and Purdue.
Illinois though, has every right to be better than Iowa, and they still aren't. IL has a population of 12 million, and 3 instate FBS schools, one of which is a private school with high academic standards for entrance, and another a smaller G5 school with nowhere near the same resources. Even with Chicago being a popular poaching ground for other schools, the Illini should own the state of Illinois, but due to poor athletic administration and a pretty bad on-field product, they get peanuts.