It's both. You can't count out recruiting because looking at the last few years before 2014, it's pretty obvious they were lazy with the bottom 2/3 of their recruiting. Look how many recruits there were with no offers but BYU (maybe one more like USU or Utah). Guys with no attention from other schools but were a good "BYU fit."
Can't develop a bunch of guys who probably don't even deserve a BYU scholarship, but more like Weber or schools like that. But for the guys who DO have the potential, yes, that's a problem at BYU as well.