I think that's backwards.
it hurts most locally, because there's already a pre-existing bias that gets confirmed, but nationally it gets the university's name out to millions of people who otherwise would have never heard of it. It especially helps that we've been there three times in the last five years. Up that to making regular appearances and you become a nationally known university. prospective students already know who you are and aren't as quick to throw out material you send them because you're not just some random school from a place they've never heard of.
Recruiting for athletics is another story. Still, it might not happen as fast as we would like, but by establishing ourselves as a clearly dominant team in the MAC long-term, you can out-recruit other MAC teams competing with us that are on more temporary upswings. It takes a lot of luck to win an NCAA tournament game when you're consistently seeded 12 or worse, but you can't win any if you don't make it, and making it every year gives you a shot every year so that it will happen eventually.