Crowd was great against Michigan. There are enough folks who care about basketball that they will turn out and be loud when the team is good, which they did the other night. Too many bad/mediocre seasons over the past 30 years that it has diluted enthusiasm enough that it takes a good team to get the fans back out there in numbers. That's not just an Iowa thing, it's all over college basketball outside of Kansas, Duke, etc.
But yes, Iowa doesn't need to give the students the prime seats around the entire court. The people who have stuck with the program through think and thin with season tickets and donations don't need to be shuffled off to the rafters of the arena. The crowds will likely be very good the rest of the season. This team is good, they are fun to watch and they've given fans a reason to be there.