I agree that you have to hit on in-state talent to be successful.
I think both programs have underachieved, but they are attracting some studs. We forget how good Quiroga was because he lost to Tsirtsis (and Tsirtsis is so special). Eppert, Quiroga, Nelson, Atwood have all been Big 10 quality wrestlers. They've also attracted some other top guys like Ayersman, Farrell and even some who didn't work out, Stein, Devon Jackson, etc.
Same goes for IU. Andrae and Angel were great Big 10 wrestlers with Angel obviously being one of the best. They've attracted some of Indiana's top wrestlers (regardless of how it's worked out). Powless was an AA, plus Raley, Roach, Molloy, Chalfant, Fletcher Miller (recruit), etc. IU has also had some guys not work out. Didn't Brandon Wright start at IU? They were in the mix for Nathan Boston for a little bit. I'm sure there are others.
It would definitely be nice to keep all of our top dogs at home (Tsirtsis, Howe, Micic, Sliga, plus guys like Corsaro, Bernard, LeCount, etc.)
I don't think they've been outrecruited by U of I or Wabash but maybe they've missed a couple of guys who might have worked out at the Big 10 level (Keiffer brothers, Riley LeFever, etc.)