Players see the success RP had on the court, particularly for a kid like James, who is from Kentucky. They don't look at the off-court issues. I think James is coached by his uncle in high school.
The kid would have to be deaf, dumb and blind to be unaware of all the baggage surrounding Pitino. Obviously it's his choice, but if you're that good, why bury your talent at Iona instead of on the national stage that is the B1G?