The worse ISU is the better chance Iowa has of landing recruits both schools are after. This does not apply much to football as I cant remember the last difference maker that went to ISU over Iowa.
It does apply to basketball and I would wager Fran and Fred will be after a lot of the same kids in the future. Georges Niang would look great in an Iowa uniform and he probably would be a Hawk if ISU was way down.
I think you have to accept the fact unless Fred goes to the NBA or Fran goes to a blue blood program, at least in basketball, both should be pretty good at least in the immediate future.
While they may cross path's from time to time on recruits, I think the actual number of head to head is not going to occur that often, be it due to philosophy, regional focus by assistant's or whatever. I look at it this way Michigan-Michigan State, Kentucky-Louisville, NC-Duke, Wisconsin- Marquette, can do it why not Iowa-Iowa State (understand maybe they are not on the same level) but the point is 2 programs within the same state are sustainable.
Iowa has more instate kids and is winning, Iowa State has mostly out of state kids and is winning. Basketball unlike football is a cold weather sport so it is much easier for northern schools like ISU or Iowa to pull the top kids. Recruiting is such a different dynamic in basketball vs football.
In terms of the game itself, unlike football they play 30+ and like Fran said given they are not in the same conference, it does not impact the ultimate goals of conference championships. Football a loss on any week has huge impact. Basketball, not so much.
If you look back on the history of the basketball games between these 2 schools, it seems, for the most part the home team does very well even if the home team program is down. That being the the case, you want both to be good. That way whomever wins the matchup, it can always be looked upon as a good win and if you lose it never could be thought of as a bad loss. Because a bad loss on your resume can put a big dent in any NCAA hopes. When you get in to Feb and March you see talking heads put up team's resumes on T.V., and they always seem to put bad losses in larger font, and highlighted.