Penn State doesn’t just recruit against the schools in PA, NJ, and Ohio - they recruit against the entire east coast - including the SEC and Clemson, who are cleaning up with top recruits in our footprint. USC does not have the same amount of competition on the entire west coast.
Midnighter, I understand what you are doing playing devils advocate here and I agree with your overall message that people who completely ignore the fact that there are other programs out there that may have just as much (or more) going for them as PSU are looking at life with blue tinted glasses. But, I will play devils advocate to your devils advocate.
You float the idea that USC is the premier program in CA and perhaps even the PAC 12, thus should be able to grab any recruit they want in their footprint. Well, I submit that PSU is the premier program in the entire area comprised of the states of PA, NJ, NY, MD, VA and the entire New England corridor. That area certainly puts us on par with the CA area that you think would be dominated by USC. Are we able to grab every single recruit we want from this area? Not really ... because we have competition from OSU, Michigan, ND, etc. etc.
You don't think there isn't any competition for USC with the Pac 12 schools, including one just a few miles from their campus? You don't think that Washington, Oregon (talk about facilities!!), Stanford, Utah, the AZ schools also recruit those CA kids? What about Oklahoma and even AL, Clemson, and OSU that will come into the state for the top talent? Recruiting is a tough, competitive battle everywhere. Nobody outside of Alabama and Clemson have it easy when it comes to recruiting
In summary, I think the differences between PSU and USC are mostly a wash (except for one factor below) ...
Money - PSU can match any financial package that USC would come up with - PSU consistently brings in more revenue than USC and this is likely to continue with the future TV contracts. This doesn't even take into consideration the significant differences in the state tax situation between CA and PA which mitigate any supposed differences. This wouldn't be like PSU trying to compete financially against a Alabama, Texas, or Texas A&M situation
Facilities - we may not be the best in our conference, but neither is USC (nobody will ever catch up to Oregon). We do have $70 million in improvements coming to the facilities soon. Where is USC from a facilities standpoint and what type of financial promises are they in position to commit to ... and how long would that take to see completed?
Recruiting - see above
Chances to win Natty - CJF arguably has PSU positioned as the second best program in the Big 10 and we are knocking on the door of the CFP this year and will probably be doing so again next year. USC is not that close ... Oregon, Washington, and Utah are all better programs than USC right now.
Lifestyle - this is the only area where there is a huge difference. Nobody here really knows the personal lifestyle preferences of CJF and his wife, including what they want for their daughters. In a way, this is the easiest factor for them to compare - either they like the laid back, quiet, rural atmosphere of State College and want to raise their daughters there ... or they would rather live in the urban environment with all the good (and not so good) things that come with southern CA. Nobody really knows ... those that reference quotes from CJF and Fumi about how much they like State College - get real, do you really think Fumi is going to come out and say she doesn't like the schools, the small population base, the lack of diversity, etc?
Who knows whether or not USC will even have an opening any time in the future and if they would have CJF on the top of their list. If the possibility of that would ever occur, I think the decision would be a quick one for CJF and his family - either they want to live in State College or in S Cal. Because everything else is more or less a wash.