Iowa took 19 more shots than MSU (and missed them), and MSU had 17 more defensive rebounds, so they rebounded most of the extra shots. It really is that simple.
As far as mid range shots, that's really not the direction the game is going. I agree that making any shot is valuable, but looking at the numbers shows the value. If a player like Bohannon is shooting from three (.376 this year) better than two (.341), then an argument could be made that he should never shoot a two. Now, that's over simplistic because he should not turn down a layup, but the percentages show he is better off shooting overall from three, and the payoff is better.
Also, I know you have mentioned that shooting from 25 feet is harder than 20 feet for most players. However, for Jordan Bohannon to free himself, he probably needs that extra distance. It may not make much sense from a percentage standpoint, but that's really the only move in his arsenal at this point.