Someone help with my memory here, but I recall Hoiberg walked into a situation where ISU had something like 3 seniors, 1 junior and 3 or 4 freshmen on scholarship his 1st year.
To me the transfers were not just an immediate talent upgrade, but also served another purpose. Had he recruiting only high school kids, he has about 90% of his scholarships tied up with freshman/sophomores in year 2. By staggering the classes, the transfers made perfect sense. With 8 or 9 guys in 2 classes, you're looking at a logjam of players, and the young guys on the bench might not see the eventual light at the end of the tunnel. Especially since they'd be at the back of the pack, surrounded by players in their same class/age.