I think the in state recruits have been important for a number of reasons, for one they hate Auburn and Tennessee. (I assume or they would have gone there). Secondly Alabama recruits have a tendency to over play their star ratings in general. Check the high number of players in the NFL from the state despite the Alabama population being relatively low.
Having said all that NIL changes all the rules. You can recruit in state all you want but everyone is going to lose 50% or more of those players in 12 months when they do not become immediate All Americans and then blame the coaching staff instead of themselves. (only to go be backups some where else).
I have no idea how to win in this atmosphere. It's easy to say that Ohio State has figured it out but have they? If they can sustain it then yes, but this atmosphere could put a Natty winner out of the top 20 pretty fast.