what do you mean when you say, "best talent wise overall and in every key category" - especially the last part?
it seems to me you are referring to talent and key categories as they pertain to ratings, which is the wrong way to look at players, teams, and the game in general. you have to think, abilities, not ratings. not only is it a less-encumbered way of looking and talking about things, but it better translates to how the engine actually deals with things. the key abilities are offense, defense, rebounding, and guard skills, and you can break some of those down further (offense into 3 point shooting, foul drawing, etc). but really, just looking at the big 4 gets you most of the way there. i think if you look at your team through the lens of abilities, instead of overall ratings and team ratings in a specific rating (like athleticism), you will see why your team is not performing as you are currently thinking they should.
for example, your team bh and pass (going by the bottom line on the team ratings page) looks fine. but if you look at the key players where these things really matter, your pg and to a lesser but substantial extent, your sg, and lesser still but still substantial, your sf - this is actually an area of significant weakness. your starting pg is 73 bh and 48 pass, that is very weak for d2. your starting sg is 59 and 57, also very weak. these things hurt your turnovers and your fg% as a team. the guard skill abilities of your guards are poor, thats a big deal.
look at offense next - ath/spd/lp/per bottom line numbers look fine, yes, but that does not come close to telling the whole story. just looking at your starting lineup (you should take it further), chelsea is a strong scorer - but significantly under utilized at 11ppg. belinski is practically useless on offense. white has great ath/spd which will allow him decent fg%, but with that ft%, hes never going to be that great, hes ok though. lehoux is marginal with 57 ath and 69 lp as his core offensive categories - those are poor - but his spd/per helps him make it to marginal. westlake at 61 ath/62 lp is in a similar boat.
when i look at that lineup, that offense, i absolutely don't think "one of the best talent wise". i think there are some changes you can make - for example, chelsea should be at least in the 20ppg ballpark given the offensive weakness of the rest of the starters. but overall, i think you need to take a fresh look at your team and how you build them, from an ability standpoint. here is a rule of thumb that is extremely useful to coaches, from guys struggling to make the NT, to guys trying to win their 5th national championship. the rule of thumb is, a good player has to have two CLEAR strengths, of the core abilities. for guards, thats off, def, and guard skills. for bigs, off, def, and rebounding. sf is kind of a special case, with 4 core abilities, with reb and bh/pass only being like, "half" core abilities (maybe reb being 3/4ths?). anyway, using that metric, i think you can see most of your guys don't hit the mark. calibrate "clear strength" to whatever your goal is - for a d1 championship hopeful, you might need 90 spd/per/bh to call your guard a clear offensive strength. in d2, trying to make the nt, maybe 75 spd/per is sufficient. im sure you have a decent idea what it takes to be good in each specific area, but if you have questions, feel free to follow up with specific questions, or you can look around at teams around your level and see who is leading them in each area, and what ratings they possess.
just to be clear, 1 example of each - glenn taylor is a great recruit for you - 64 ath, 80 spd, 89 def - thats a clear strength on defense, no two ways about it. 64 ath, 80 spd, 44 lp, 70 per, 62 bh, b- ft, that is enough to call offense a clear strength as well.
on the other hand, lehoux is by far your highest overall rated player, but he doesn't meet the bar. with 57 ath and 69 lp, hes not clearly strong on offense - which is fine - if he was on defense and the boards. with 92 rebounding, even with a mediocre 57 ath, rebounding is still a clear strength. but defense, hes got 62 def and 72 sb to go with that 57 ath - definitely not a clear strength.
on rare occasion, this rule can be broken, in 2 cases - but try to use them very sparingly - most coaches are wrong 90% or more of the time, they think a player is a suitable exception (from my experience, with guys i mentor or co-coach with, and usually these guys quickly get to championship level coaching, and still struggle to limit the times they use these exceptions). the first exception that is suitable is by a player who is an extraordinary offensive talent. the most valuable player on the team is your lead scorer (if you use him right, at least, this is almost always true). a guy who scorers 20ppg for you can have such a big impact on your team, you can take someone on raw offensive greatness, as long as they aren't just awful in the other 2 core areas. note this almost always has to be a guard or guardy sf to have such an impact. the second exception is a guy with 1 clear strength and is just below clear strength level in all other areas. sometimes you just have to take guys like that, but don't make a habit of it.
when this rule of thumb takes you to championship contention is when you take abilities one step further - from the player level, to the team level. think about this. if you have 5 players on the court, each with 2 clear strengths, thats 10 total. a great team only need 2 lead scorer types starting, 2 great rebounders, 2 great bh/passers, and can definitely get away with 4 great defenders. as soon as you manage to build a team with all 2 clear strength players, and you line them up right so your pg/sg are the guard skills, your pf/c the rebounders, and you have 2 clear strength scorers and 4 clear strength defenders - you are in title contention. doesn't matter if its d3, d2, or d1.
i hope this makes some sense, for most people i go through this with, its a complete shift in the way they view this game. we are all trained to look at ratings, we talk about ratings, compare ratings, recruit off ratings - its all wrong! its really the complete opposite of what you should be doing. its all about abilities. ill often ask someone, what don't you like about that player? they will say something like, well, his speed is a little lower than i like at sg. so... what does that mean? is his offense, defense, and guard skills not where you need them to be? a rating tells you nothing, an ability tells you so much. it will take you a few months to shift your approach of the game to the ability view approach, but i guarantee it will help you dramatically, if you take that on.