We are losing our traditional source of talent - the LDS player. The reason isn't that BYU has changed as much as the world has changed. Local players are getting offers from big programs across the country and the ease of communication and travel facilitates this. Furthermore LDS kids outside of Utah can find LDS communities on lots of campuses and don't need to flock to BYU to live their religion.
If BYU wants to maintain or increase their talent level we are going to have to greatly increase our non LDS talent.