Is it wrong to take a recruit from a lower prestige school when both are in the same area (no locale advantage)?
No. It may annoy them endlessly, but it's perfectly acceptable. A coach should do what's in the best interest of their team.
It is wrong to take a recruit from a lower prestige school when you have the location advantage?
No. Why does it matter where the school or the recruit is located? If a coach wants a player and the player has not been signed - he's free game.
Is it wrong to begin recruiting stealthily and/or right before the signing cycle or at the signing cycle?
No. I would say there is no such thing as stealthily recruiting. It all becomes rather obvious in just over 3 hours like clockwork.
Is it wrong to use the above recruiting tactics against someone in your own conference?
Absolutely not a problem. Again, many coaches, I think to their disadvantage avoid conference battles. But I want my team to be the best team, period. Many conferences have schools nearby one another, so to avoid in conference battles is really rather foolish. I know real life doesn't always apply in this game, but certainly coaches in the same conference battle all the time.
Should you ever battle someone in your conference?
Only if you want to have the best team.
I believe that it would be wrong to enter a battle against a lower level school for more than one recruit, would you agree?
No, I would not agree. Again, it may make them angry. But what is the goal? Spread out all the good recruits? Or to win your conference, go to the NT, win the NT? Typically if a school at a disadvantage of some type has a few good recruits they will be targeted by someone. If they happen to have several recruits that are the best and most winnable battles, why not go after them? Just because they called "first dibs"? and jumped on them the first cycle? I have never understood this logic.
That said, if the makers of the game wanted to somehow provide greater weight to players considering schools longer or some other method to make high effort blasts just before signing less effective, I can totally understand that. It is a less enjoyable part of the game when you are on the receiving end of a 30-40 home visit bomb when you feel so close to the finish line. But, most coaches know that this can be avoided often with pre-emptive effort to make the recruit "tight" with the disadvantaged school. That still may no help, but it often mitigates quite a bit of late effort bombs. For the record, I have dropped the bomb and been bombed, so to speak, many times. Clearly this is a D1 complaint mostly.
And the last overall question, What is out of bounds?
Nothing is out of bounds.