Here's my analysis for what it's worth.
michigan's allure after the Hoke hire is waning. Recruits are starting to notice that their Sugar Bowl season was a fluke and that Hoke is a baboon. It was the momentum they had that helped land some good recruits in the last 2 cycles in areas they normally don't pull from. Now that they've come back down to earth, they're pulling kids from the MW and Mid Atlantic (like Lax said) that follow B1G football.
This type of recruiting for MW schools leads to the occasional 10 win season, but typically ensures 7-8 wins consistently. They're no longer the powerhouse they think they are and this is what they can expect from here on out. In the last few weeks they lost Campbell and Harris, both from areas they don't traditionally recruit.
With regards to ND, I get frustrated when Kolin Hill situations arise but I think taking the risk is worth the better chance of a 11-12 win season. By bringing in talent from across the country, we can bring in better, more diverse athletes than the skunkbears. While we might end up losing some to decommitments, transfers, grades, etc. I think it positions us to win 11-12 more often. Ultimately we'll have a better chance of making the playoff with this style of recruiting and player development instead of waiting until we can scoop up several elite MW prospects in the same cycle.
The difference in philosophy equates to catching lightning in a bottle once a decade (michigan) or more recruiting uncertainty but a chance to win 11-12 several times a decade. It takes the right kind of staff to but in that type of legwork but ND must have it in order to compete year in and year out.
With a different staff, meatchicken can recruit like ND but they longer they stay with Hoke the longer it'll take to reestablish themselves as a pseudo-national brand.