Michigan obviously does have some disadvantages that some other teams do not, not the least of which is the fact that they hadn't had the level of success that others have in the lifetime of the kids they're recruiting. I think that they are close with talent but the gap exists and in order to compete on that stage with the teams they're likely to play they will need to get more talented and it starts with the lines and QB. There is a huge difference between beating Georgie/LSU/Bama/Clemson in back to back games while also having a virtual CFP first round the Saturday after Thanksgiving every year and winning one game at home with the benefit of having a touchdown taken off the board. Deny it all you want because that's what spartans do, but it is a fact that the Big Ten as well as the CFP selection committee all acknowledged. You can take several 3 stars and turn them into stars but having a roster built on nothing but is a problem. And saying "well michigan sent 35 players to the NFL" is misleading when only 5 of them have been first rounders while Bama, OSU and Georgia have 3-4 first rounders every year.
Michigan is not going to relax their academic standards which is probably their biggest obstacle to acquiring talent. They need to figure out something though because the transfer portal is here to stay and going forward it will be just as important as high school recruiting. They can't burn bridges when a recruit commits elsewhere and they need to have scouts dedicated to both high school and college with the college group monitoring who is in the portal and whether or not they can help.
Michigan has the ability to level the playing field in a few short years if they open up the money bags. Other schools aren't following the rules for NIL and Michigan by all accounts is. Jackson State just landed the number 1 overall recruit by blatantly committing a recruiting violation and not a damn thing is being done about it. Yes, a Michigan degree is a powerful thing to have in life, but trying to sell 16/17/18 year old kids on a degree when OSU, Bama. UGA. Clemson etc are openly setting kids up with millions in NIL and their entire pitch is getting you to the NFL that degree is only going to resonate with a select few kids. I'm not saying that is a bad thing, but michigan still won't allow their student athletes to take online classes whereas OSU and LSU QBs are talking in press conferences about how they've never even set foot on their campus.