Have ucla and indiana dropped out of blue blood status? right now I'd say it only includes uk, ku, unc and duke. obviously there is no hard set criteria for what makes one a blue blood or the tier levels, but I would say matta got us to the top of tier 2 in about 6 years. In 2011, we were above msu (due to trending and b1g titles), probably syracuse and approaching louisville. Then obviously things went south and I agree we aren't in the second tier at the moment, but trending up.
I don't think the schott is a deterrent per say. I remember being at games in 2007 and 2010 when the place was rockin. yes, its not the greatest venue, when the opponent is meh and the team is average, but I think that somewhat describes unc as well. The dean dome isn't the greatest basketball venue (had many similar criticism to the schott in terms of layout and seat licenses) and I've seen that place be pretty dull, especially in the early 2000's. Winning changes everything in regards to fan support and atmosphere.
I am trying to compare us to a school like villanova. Before the last 4-5 years, they were a solid basketball school with a good tradition and a national title to their name. They are now near the top of tier 2. It took wright some time to build them up, but they are there now. I think the thing that separates the blue bloods is coaching dependency. Those 4 previously mentioned will have strong interest in their teams no matter the coach and performance (for a time). Indiana and ucla were there, but some bad coaching decisions for the past couple of decades may have dropped their programs out. IU still has the fan following so even though they have been struggling, I think they could get it back quickly, but I think ucla has lost it.
I don't know that we'd ever have the fan support for this sport to move us into that top tier, but there is no doubt there are plenty of fans across the country to win over. I think if Matta could have continued for another 5-10 years on what he built the first 5 that we would have been in that conversation. The question is, can any coach sustain that level of success here. I think Holtmann is finding out that you can certainly recruit better here than you can at a good big east school and doors are opened just because of the brand. I think a good successful coach can bring in top notch talent here consistently. It remains to be seen whether success will bring the fans back.