There are lots of kids that are great scholar-athletes with high standards. Stop blaming the honor code. You think the honor code stopped Mark Madsen from attending BYU? There are lots of LDS athletes in other sports besides FB & BB that choose to attend other universities. Look at Mark Pope's daughter, Avery. A basketball player, choosing to be elsewhere. Now maybe they aren't good enough for BYU. Don't know. Regardless, they aren't playing at BYU. Utah has more LDS players along with Arizona, Stanford, USC, ASU, WSU and etc. Not everyone is looking to attend BYU.
We want better players? Recruit them. There are players out there that prefer an honor code. Find them. Look for them. Seek them out. Advertise. Whatever. They are there.
On the other hand, I know athletes who gave up full rides just to walk on at BYU. Who is paying for their expenses? I can think of one athlete that would have a scholarship anywhere here in Texas but has to go to BYU (dream school). What a waste.