All valid points. But I think the overall factor is the player’s motivation.
Does TJ want players who are motivated first by money? I don’t see it that way. TJ first wants to recruit players who are motivated to be better players first and foremost; any NIL money would be a secondary motivation. This is why TJ has hit the mid major transfer portal pretty hard during time as HC. Those are the type of players who are playing hard to make a name for themselves. And it’s that motivation that works very well in his very rigorous training program
Iowa State isn't a "money bag brimming over" school. That's just a reality of the Iowa State situation and TJ (and Matt Campbell) have leaned into it.
But the other reality. Just because a player is looking for a big payday, doesn't mean they aren't supremely motivated to be the best player. But your point is valid that coaching staff's have to do their research to find the right kids.
I watched a handful of Hawkeye Big10 games before Freeman shut things down. And always felt Freeman was a top tier P5 player and effort guy. He'll get paid and he (or his reps) shouldn't be faulted for the NIL game that college Presidents and AD's have created.