All I've been hearing for the last twelve years is that we don't make enough money to compete with schools in the P5. Twelve years, and yet we're still having great recruiting success, haven't heard a peep about our head coach that just won a national title leaving for a "bigger" school, our conference mates are paying their head coaches big money and having huge success with NIL attracting recruits (look at what Villanova has accomplished the last 2 months). So yes, I absolutely believe this issue is overblown and we will be able to compete long-term.
As long as the NCAA tournament or whatever iteration of it is here in the future is highly valued by the public, UConn won't have any trouble competing.