I think there are a lot of "if's" that all have to bounce Iowa's way.
Gesell must be good. I don't doubt he is... but he's a freshman and there are a lot of good, experienced players he would be competing with in the Big 10.
Olaseni and Woodbury need to be decent. If.
Oglesby needs to find some consistency. If.
Defense needs to improve, a LOT. If. Iowa was 180th in the country in defensive efficiency last year. 3 B10 teams were in the top 5, 5 were in the top 50, 9 were in the top 100. Only NU, NW, and Iowa were below 100.
On top of that, PSU was like 94th, allowing 97.3 point per 100 possessions. Iowa averaged 101.9 points per 100 possessions. That gap is actually pretty large.
I think it all boils down to defense, and that's where I question Iowa's ability to make the dance. Iowa will score and likely score a lot this year. You lose Gatens, who was obviously a pretty dang good defender. Iowa's likely top players next year will either be freshman, or players I don't think are anything beyond average defenders. Basabe gets a lot of blocks but those are helpside and I don't think he's the type of guy who defends straight up all that well. I could obviously be wrong here but I don't think Iowa gets markedly better on the defensive end.
Edit: Here are the BCS teams with a worse defensive efficiency than Iowa last year - NW, Boston College, Providence, AZ State, DePaul, and Utah. That's it. Only one BCS team made the tourney with a defensive efficiency greater than 100th, and that Mizzou, who had the #1 offensive efficiency (by a pretty wide margin) and who also got upset in the first round. Basically the defense needs to improve, and likely improve a lot.