I can't speak of the talent pool slipping, but Coach Colby had tremendous success at Kokomo. So to suggest that opposing coaches "figured it out" his offense is absolutely foolish.
With the exception of driving through Frankfort a handful of times, I don't know much about it. So I don't know the issues Frankfort deals with. However, to suggest rural areas can't compete is simply untrue. Since Frankfort is a 4A school, let's stay in the 4A class and look at this weeks polls. I don't think most would consider Marion, East Central, New Prairie, Northwood, Mississnewa big city/suburb schools. Not to mention the ton of schools that are either competitive or at least cycle through up and down years. Can socioeconomics play a factor? Of course! Do larger cities have a bigger pool of talent? Sure! Even so, I believe nearly every school is capable of being competitive or at least having a respectable program that may go through cycles occasionally.