I'm guessing some people here are not college football fans. How many Alabama kids are on Saban's roster? How many South Carolina kids on the Clemson roster? Etc. As long as colleges permit out of state students, athletes are going to be a part of that equation. And coaches will do their best to find the best talent for their team, regardless what state they are from. As a Penn State graduate, I know that they have a fondness for PA football players, and rightfully so. There is a great deal of football talent in this state. But they recruit from out of state as well. And I don't blame them. If the big boys are recruiting nationally, they need to do the same in order to compete.
Make the rule be across all sports, a sort of title ix(b). The student athletes must reflect the make up of the student body. If 85% of the schools students are in state, then 85% of the athletes in scholarship must be as well, or if an out of state student must pay 4 times the tuition fee as an instate student, then an out of state athlete must take 4 of scholarships that athletes sport is allotted.
No matter what sport it is, a state school should be represented by that states athletes