Agree that player development has taken a hit and believe it is the high attrition that bit hard for several years.
Think recruiting is not nearly as good as it was up to several years ago (with an exception here and there) - it used to be most of our recruits had other major offers. That has not been true for several years.
I think recruiting is still an issue. We recruited pretty well from 2005 to 2007 then fell of a cliff in 2008. But guys like Ballard, Bulaga, Clayborn, Hunter, DJK, Edds, Nielson, Bernstine, and Binns were all well regarded recruits with multiple if not numerous BCS offers. You get some guys like that, then hit on player development like M. Daniels, Klug, McNutt, Stanzi, Tarpinian, to go along with decent contributions from in-state recruits, and we are good to go.
I don't think we are developing players at a worse rate; rather we are recruiting less sure things and less guys with higher athletic ceilings. Our defense is simply missing a few explosive, all-conference type players. This year we see it at LB, DE, and SS. Upgrade two of those 5 positions with NFL level talent and our defense would be very good. Currently, those positions provide replacement level quality.
Same thing on offense. Plug one or two high-end skill talent players and perhaps an interior o-linemen and we are off running.
We have to recruit a handful of higher end BCS-level recruits each year to give our development program just a little more margin for error.