I don't think KF looks for good stories necessarily. I just think he looks for players he realistically thinks Iowa can get. Here's the analogy I was going to present to Playmaker (no, it's not perfect):
In HS, when a guy wants to go to Homecoming or Prom, he decides who is going to ask. If the guy is popular/athletic/football team, etc., he can ask anyone and they might go. He doesn't worry about anyone saying no (again, hyperbole).
If you are not quite that level (not Mr. Popular, athlete, etc.), you don't waste your time asking the Homecoming Queen candidate or the cheerleader, you ask someone who you think might say yes.
For Iowa recruiting, I think they set their sights on certain types of player (as you mentioned) but also don't try to shoot too high and waste their time dealing with/visiting recruits that will never come here. Now, you can say you never get the recruits you never try for. However, with a set timeframe, you can't try for everyone and hope they knock down your door to come.
Now, with the Texas recruits that didn't come here, they actually had the popular, good-looking girl say yes to the dance invite. However, they told her not to date anyone else and she didn't listen. It's a bit maddening, but when you have low self-esteem (or don't think you have a blue blood team), you don't like when they look around a bit.
That's a long way of saying I don't think that the Iowa staff (KF in particular) is lazy or wants 'good stories'. They feel they are realistically looking for players who will say yes. The same reason normal guys in HS don't ask every girl that's above him in status, etc. until one says yes.
Final point - Oliver Martin is the good looking girl that you knew growing up and she lives just down the block from you. You didn't really notice her right away, but when she became popular, you decided to ask her. Well, once one of the popular guys asked her, now she is going to decide whether to go with the popular choice or the familiar choice down the block.