I think the big thing here is are you just looking at football or are you looking across the athletics program. Many of our other programs are pretty competitive in the Big 12, so as a whole I think we are good.
With regards to football, I think we just need to be realistic. We are never going to compete for a conference football title. Ever. The resource gap is just too big. Sure, we were in it to win the North a couple times when the division was at about its lowest level ever. But even then, we weren't going to hang within 4 TDs in the title game. Just turn on the TV and watch a game at OU or UT or USC or OSU or Florida. Take a look at the facilities these schools have, take a look at the quality of athletes they have on the field. Take a look at the amount of national exposure they get. And the gap keeps getting bigger. UT is looking to expand to a 125k seat stadium.
If it makes anybody feel any better, Iowa isn't going to get there either. Sure, they have been in the fight for the Big 10 title, but that conference is down from its peak, and the hawks are still a long ways from being a national power.
We can be a 6, 7, or 8 win team in football consistantly and we can be very competitive in the rest of the sports. I think that is a realistic expectation, and I think playing at that level in the Big 12 would be a much better option than being a contender year in and year out in CUSA or the MAC. But if you expect to be in the hunt every couple years in football in this conference, you are setup for a lot of disappointment.