Sammyk, I would disagree on a couple points:
first, they are in the right conference. ACC would not give them anything the Big 10 doesn't already give-national recognition, great conference competition, playing in areas where you recruit, playing similar type of schools (big state schools w/ good academics), etc.
second, they can recruit on a national level (just haven't done it very well) b/c they are a big public school with a huge alumni base. If Franklin wanted to he could go into Cali or Texas and pull a couple 4 star recruits. You can go into the southern states and sell PSU on a lot & weather doesn't have to be an issue. Do you think the weather is that much better in Ann Arbor or Columbus?
I will agree that the recruits in state are not what they used to be. PA may have at 2-3 4 star or 5 star guys each year. They haven't been able to pull all the elite ones (see Julian Fleming) so that does hurt. But they have enough of a talent pool between PA, NJ, Eastern Ohio, Maryland/Virginia to compete if you can steal a couple Fla, Georgia, Texas type skill guys.
No reason that PSU shouldn't be able to compete with Ohio St. if they recruit better. Remember, Justin Fields originally committed to PSU before going to Georgia. When he had a 2nd chance, he then chose Ohio St. If they win that battle, they have a better chance at competing with the Buckeyes...