To your first question:
Prior to 1984, the NCAA held exclusive TV rights to ALL of it's member institutions' games. In other words, only the NCAA office could negotiate TV contracts, and lobby for which games the networks might show. So only the big dogs got on TV. In 1984, the US Supreme Court ruled that this arrangement was an anti-trust violation. This allowed the Conferences, and even individual schools, to negotiate their own TV contracts. That opened the floodgates for TV exposure. In 1984, there were 89 games televised. In 1985, there were over 200. Another effect of this was that some of the kids who were All-State in High School and went to schools like Notre Dame, Ohio State, Oklahoma, and USC, knowing that they would probably never start, but that they might get on TV someday if they got into a game, started going to other schools where they could start, AND still be on TV. As the 80s turned into the 90s, cable sports networks exploded; ESPN spawned ESPN2, ESPN3, ESPNU, etc; Fox Sports came along, Jefferson Pilot Sports was televising Mountain West games, for Christ's sake! EVERYONE seemed to be on TV. That really ate away at ND's advantage of being the flagship program for college football. Holtz had Vinnie Cerrato, who was an all-time great evaluator of talent and recruiter. That helped keep the recruiting high as the other schools slowly caught up. ND still had high standards for its athletes, even back then. Tony Rice was a Prop 48 kid, meaning he lacked either the requisite GPA, or SAT score, to even qualify for a D-IA scholarship. The story goes that the only way the University allowed him in was that Holtz went before them and personally guaranteed that Rice could, and would, be able to handle the rigors of a Notre Dame education. The University took a chance, and Rice not only graduated, but graduated early. The University refused to take in Randy Moss, because of academic and character concerns. So this isn't something new. But the college football landscape and economics were so much different 20-30 years ago, that you almost can't really compare the game to what you have today.