I don't see how developing out-of-state ties in recruiting means you can't recruit well in your own backyard. Uhhhhhh...of course you have a foot in the door for Iowa kids. You are a state school. That argument makes no sense.
With that said, the bottom line is the state Iowa will never be a hotbed of high school basketball talent. So even though there are a handful of big-time prospects from the state from time to time, a program that wants to have any sustained success can not depend on Iowa kids alone. Personally, I think that was Tom Davis's undoing--he relied way too much on Iowa kids, especially in his latter years.
Iowa State has done an excellent job of acquiring talent from out of state. McCaffery needs to follow this blueprint and frankly I think he has been trying to. Landing Tyler Cook was a big first step.