I think it's interesting that you bring up how fans are clamoring for the staff to recruit in-state better in a year where they're missing out on several four-star in-state kids. Now, it's not fair to expect any coach to clean sweep his in-state talent, but it's unexceptable to be outworked by not only border state schools like Missouri and Iowa, but schools that are a thousand miles away? Auburn, Miami, Florida, Arizona State, North Carolina, Tennessee, Oklahoma, several schools recruited the "Big 4" harder, better and more consistent then Nebraska. That just can't happen. Luckily it looks like 2023 will be a different story.
And as for a smaller class number leading to a lower ranked class, well last year 8 teams who signed less than 20 kids finished in the top 25. This year several teams won't sign 20. It's about the quality of the recruit, not the quantity.
With everyone signing smaller classes, this is actually where a school like Nebraska should be benefiting from the trickle down effect. When schools like Alabama, Clemson, Georgia, LSU, Ohio State, etc are all taking 5+ less kids, there's opportunity for the second tier schools to gobble those guys up.
Covid is definitely part of the blame as to why that's not happening. Nebraska needs to get kids on campus, which is why you're seeing more local flavor this class. But the losing is more to blame. Frost is struggling to sell his vision. When local coaches are encouraging in-state kids to look for progress, what do you think kids in Georgia, Florida, Alabama, New Jersey, Texas, etc are hearing?