Agreed. But that's because he had a murderers' row when he first took over. He still played tougher non-conference opponents than Ferentz has throughout the majority of his tenure.
Fry's Notable Non-conference Opponents:
1979: #3 Oklahoma, #7 Nebraska
1980: #6 Nebraska
1981: #7 Nebraska, #6 UCLA
1982: #3 Nebraska
1983: Penn State (who finished 8-4-1)
1984: #12 Penn State
1987: #17 Tennessee
1988: Colorado (who finished 8-4)
1989: Oregon (who finished 8-4)
1990: #10 Miami(FL)
1992: NC State (who finished 9-3-1), #1 Miami (FL), #10 Colorado
1994: Oregon (who finished 9-4 and won the Pac 10)
1998: #17 Arizona
Yes, as I pointed out by writing this:
Ferentz, too, has played his fair share of opponents who were complete garbage (i.e. North Texas). Regardless, there's no question Fry played significantly better opponents in the non-conference, as I clearly laid out above.