I don't think Iowa's defense was the problem. You don't hold a team to 31% shooting very often, and when you do, it shows just how inexperienced you are if you can't come away with a win. Iowa had their chances, but home court proved to be the difference in this game. ISU and Iowa are very equal right now, as shown by their records, their struggles against "weaker" competition, and their inability to really carry momentum into taking control of a game.
Both teams will get better. Right now Iowa has very few players that would normally start on a D-I team. Kelly, Cole, Looby, and Freeman would all maybe start - but since two are freshmen, one is a senior, and the other is out injured, that doesn't do much for the team this year.
On the same token, ISU has had a lot of defections, injuries, and NCAA suspensions, and that doesn't help much with their situation either. I think if both squads were full, ISU would have won by 10-15 points easy, just like Iowa did last year when ISU was low on players and Iowa had a full team.
But I really like the way both teams are going. Both Lick and McDermott are great game coaches, and have taken low-talent teams to great heights.