I agree with all of this - but to me, it is no different than it has always been. Even when we were winning 30 a year and being a consistent top 10 team, we did not recruit at the level of a UNC, Duke, 'Zona, UK, etc. We tended to get their backup guy (Ben Gordon, for example) and then every few years pop in a stud. I'm not sure if we want to call it a "brand" issue or if it's that players just did not want to play here, but you are right that was/is a consistent issue.
From an experiential background, I attended UConn from 98-02. Best time of my life. But I have to admit, that when I visited my buddy who attended the Univ of Maryland, the experience was just "better." Maybe it was a grass is greener or just new experience, but it was always more exciting, there was more going on, more options for everything. Attending games at Cole Field House made our games feel like a high school game; and this was when we were still selling every game out and a national power. I actually stopped getting season tickets my senior year as it was more fun to to party w/ my friends at my apt and watch the games then actually attend.
The point of my post was that our recruiting, especially regionally, has not changed. There absolutely is a problem and life would be much easier if we could dominate the Northeast recruiting scene but we have never done that. Even in our heyday, we did not recruit like Arizona.