I was there during the Clay Stapleton years. The reason given for punting on the third down was that if we screwed up the snap we always had another down to try again. I'm not sure but it may also have been true that if we got the punt blocked but we recovered, we could also try to punt again. We think we had two players go to the NFL while I was there (Tom Vaughn - RB/DB and Tim VanGelder - QB) but overall we weren't successful recruiting.
We weren't very competitive in football or basketball because we didn't have the budget nor facilities to compete with the rest of the Big 8. Our athletic director (whose name escapes me which is probably fortunate) announced that since we couldn't be competitive in the big-name sports, we would make up for it by being spending more than average to be competitive in the lesser known sports such as wrestling and gymnastics. We had men's track, cross-country, swimming, tennis, and of course baseball. For women, I don't ever remember hearing about a basketball team or swimming (they may have been there but they sure weren't advertised) but I'm sure we had women's track, cross-country, tennis, and gymnastics.
When Clay Stapleton stepped down as coach and became the athletic director sometime in the late 60's, he hired Johnny Majors. I heard then that the candidates had been asked what they would do to make ISU competitive in football and Majors' response supposedly was "Give me the money and I'll give you a winner". Apparently Clay did and I know Majors did.