My honest opinion is that Iowa puts too much emphasis on recruiting Iowa. I know this will draw some guffaws since I'm an ISU fan... but the simple matter of the fact is that while you could build a great team with just Iowa talent most years, ISU and Iowa have consistently failed to draw that talent. People ragged on Mr. Davis dang near 25 years ago for not landing LaFrentz. With the eggs all in the Iowa preps basket, when Iowa misses on the top guys it leaves them holding the bag in a bad way.
In the 247 database, Iowa has landed two top 100 kids from outside of Iowa since 2003. Tyler Smith and Tyler Cook. Smith bailed after one year and Cook hasn't delivered a tourney yet.
Yes, if Iowa landed all of the big fish in Iowa over the last 25 years, it would probably have a few more second weekend visits in the tourney. However, it didn't happen. I don't think you can expect it to change. My opinion is that Iowa needs better national recruiters at the helm. Or they need to get creative in how they have brought in that talent, and no I'm not talking about paying guys. JC's and transfers need to be on the table for a program trying to get a seat back at the table for programs on the level of ISU and Iowa. Again just my opinion.
https://en.wikipedia.org/wiki/Iowa_Hawkeyes_men's_basketball
If you look at this list of all conference guys at the bottom, since 2000 there haven't been many years Iowa has had multiple all conference guys. The years there are multiple guys, you can see those are the years where Iowa is good and makes the tourney. The simple fact is Iowa needs more good players.