This. I don't think people realize how big home state talent is in today's game. These kids are in contact with each other all time with social media. They communicate daily, weekly, etc. 5 star CB Will Johnson, who is from Michigan, almost got fellow 5 star CB Domani Jackson to leave the sun in California to go come to Michigan, just so they could play together.
The home grown talent is invaluable in recruiting. They all go to these national camps, the national 7 on 7's, the corporate events that Nike, etc put on. So they are interacting with each other at a level they never did before the internet, social media and all these big high school football events.
If a coach goes to an Iowa State or Cal (simply using your examples) -- those schools don't have the budget to recruit the big time programs have, they don't have in state talent to help sway kids to come play with them, so will they be able to sign a couple more 4 star kids? Absolutely. Are they going to sway 5 star and a bunch of top 100 recruits to come to Iowa State or Cal? Absolutely not.