The last year UNC got the #1 player from the State of North Carolina? 2014. That includes missing on Brandon Ingram, Dennis Smith, Devan Dotson, Patrick Williams, Isaiah Todd (went pro), and Bam Adebayo. Ohio State has done much better but still only three times since 2014. UK hasn't snagged one but their state rarely has someone worth prioritizing (for them).
No state gives much loyalty to their in-state school. We just complain about the State of Illinois because their our state. The priority is and should be on national recruiting.