Recruiting D1 at D3 players is an all in thing. You can't spend resources anywhere else, you have to try and find gaps where players might be missed, you take potential risks by signing players with 2 levels of scouting or less, and you often get burned. I typically have offers out to 2-3x the number of players I actually sign, and most times don't fill all my openings. I always lose players I think I have in the bag at the last minute. Occasionally you get lucky and it all works out like my Elmhurst team. But I have instances where I have had 6 openings and only filled three with two DII players and one DI, leaving a really thin roster. It's a risk, but it pays off if it works.
And all that said recruiting is my favorite part of the game, I absolutely love the challenge of trying to land players that are nearly out of reach who have significant flaws in their game and watching them grow to become great D3 players. I will also add that my Elmhurst team had a similarly talented squad a few seasons ago and got ousted in the 2nd round of the NT as the #1 overall seed, so even with huge talent it's still easy to be only an average coach and lose as a favorite.
I do agree though that recruiting as a new coach is very, very difficult. I spent a week reading up on it prior to coming back into the game, and that was only because I knew where to look for info. It is very easy to get discouraged if you don't have somebody to mentor or have a basic idea of how things work.