You can have all the 3-stars you like and you can coach them up. I'll take as many 5-stars as I can get, and even allowing for guys who don't pan out, guys who are jerks, etc., I will kick your ass.
You might get me once in a while. But I'm going to win the conference and get to the playoffs year, after year, after year.
The biggest reason - I have a BIG margin for error. On the whole, my 5-stars are going to outperform. Even if I have some players who never reach their projections, they are probably going to be contributors and help us somewhere - because they're just such good athletes.
You on the other hand - you have NO margin for error. If some of your 3-star guys don't pan out, they're clogged up wasted scholarships. If they play to their projections, fine. My guys are better and I'm going to win 80%+ of the time. If you get a whole bunch that play lights-out, congratulations, you beat me fair and square. See you next year.
If my 5-star guys go pro after three years (not two, THREE, you gotta be 3 years out of high school), that's fabulous for me. That means they played great ball. If they played great ball, that means we won. Tons of winning. So now every great prospect in America listens to me when I call them , because we win big time. Recruiting is easy for me. I can SELECT which of these great prospects I want. If a guy is sketchy, or maybe is lazy, or an attitude case, or a moron - I just move on to another excellent guy and leave the sketchy guy to be somebody else's problem.
You always, ALWAYS seek to bring in the best possible talent that you can. Talent is what wins games most of the time. It's just playing the percentages. An average coach with great talent can win National Championships. Vince Lombardi with a roster full of average is going to be driving a cab.