I think we can definitively say no on that too.
First off, posters always seem to think recruits take an academic approach to their recruitment. It's not like they're getting out mapquest, like I just did, and saying Chicago to Champaign is 136 miles, but Chicago to South Bend is only 96 miles. Oh mom dad, that's a 30 min time savings (although it probably isn't given traffic and tolls) times 15 home games a year times 4 years. I have to go to Notre Dame it will save you 60 hours over the next 4 years. Notre Dame it is.
But the way I really know this is a non factor is because kids don't even stay home for high school anymore, let alone college. We may very well see Morez leave Chicago to finish his career next year. Shannon left Chicago. The reason there is less talent in Chicago than usual these past handful of years is because top talent from all over is flocking to the many many prep schools. There was a day when it was Oak Hill or nothing in terms of prep schools. Now if you look at the top 100 in any given year, 50% of the kids are from prep schools.
Also, kids definitely grow up with favorite teams, and proximity can play into that, but by and large an allegiance is to a home state school if proximity is involved. They don't draw a circle around their house and say I'll have allegiance to any school in a 100 mile radius. Given Notre Dame has never sustained national attention, I can't imagine there are any kids in Chicago growing up watching Notre Dame basketball and dreaming to one day be the next Demetrius Jackson.
So no for myriad reasons, I do not feel Shrewsberry is any more of a threat to our recruiting at Notre Dame than he was at Penn State.