There are 2 reasons why you might build a bigger and better facility:
1. It will attract better recruits.
2. It will improve the strength and conditioning.
I suspect that neither will be improved much, if any. I just find it hard to believe that there are many recruits Michigan would lose if they "only" spent $11 Million on their weight room. As for strength and conditioning, you just need a good enough facility. Players still need to put in the work, and I just don't see the extra expense as being worthwhile.