Eh, the biggest problem re: us recruiting against and competing with OSU is winning. Period.
Having a big city with things to do outside of football helps. But I don't think that's what draws in the elite recruits. Being in the top-5 nearly every year this century and putting a ton of dudes into the NFL is what brings the elite kids to Columbus. It's no mystery why our recruiting shot up after our 2016-17 seasons. Heck, if anything we're recruiting much better than what our results on the field would justify. So I don't think small town or PA dynamics are impacting us that much.
There will be kids who don't like the small town feel. Desmond Umeozulu, the 4* edge from Maryland, mentioned that he'd be interested in PSU if not for it being in the middle of nowhere. But I don't think it's hurting us that much.