Don't disagree with much of what you are saying, but I also think that there is a lot more perspective to have here... Can Notre Dame routinely recruit with Ohio State and Alabama anymore. No they cannot. The reasons for that have been explained to death on this site. However, which team has won the most games over the past 5 years out of the following schools? Ohio State, Michigan, Notre Dame, Michigan State?... That's right, Mark Dantonio at Michigan State won more games coming into this year than the staffs at those other schools. He also took his team to the playoffs, and beat Urban Meyer and Ohio State along the way... Meanwhile, coming into this year, Brian Kelly was 3-1 against Dantonio, with the only loss coming on a fake field on the last play of the game, when ND's safety fell down. He easily could and should have been 4-0.
What am I getting at. While Notre Dame can't recruit with Alabama, there is no way that you are ever going to convince me that they can't recruit with Michigan State. The same can be said of Oklahoma, where Bob Stoops has also won a championship and kept his team very competitive... In fact, I posted in a thread yesterday talking about composite recruiting rankings and the facts are the Brian Kelly has outrecruited both Stoops and Dantonio over the past few years, but better development and retention of players have happened in those programs.
People on this board love Lou Holtz... But he won exactly one Natty at ND. He was a great coach, but he won ONE title. The same number Stoops has won at Oklahoma. Not everyone can be Alabama, and Notre Dame isn't going to be... That doesn't, however, mean that Notre Dame has to be average like Duke is, under the right coach. There is no reason Notre Dame (who already out recruits Michigan State) can't win like Michigan State. There is no reason that ND can't win 10'ish games every year, make the playoffs every 3 years, play for a title every 5-7 and have a down year be 8-4 or 9-3... Kelly has brought ND a long way, they just need somebody to finish the job he started. They need a toughness, an energy, a swagger and defiance about them. Shaw has built it at Stanford. Dantonio has built it at Michigan State... And Notre Dame out recruits and has more resources than either of those schools, by a substantial amount.
I don't buy the idea that ND can't perform like a top 10 program most years. Top 1-2... Probably not. But Stanford, Oklahoma, Michigan State, Oregon etc, etc, are more than possible.