I don't really know if you are misremembering to some degree. We relied heavily on out of state players back then, still, though. We also took on drop down transfers. He also had a reputation for offering in state kids more walk ons than scholarships, and saving scholarships for out of state students a lot of times. I remember that being something that people complained about.
In Bobby 1.0, the Griz had more dominant offensive players, yes. The also were clearly the premier program in Montana and the Cats were pretty garbage. It is a lot easier to get all the talent in the state that way. I also believe that the level of football talent outside of Montana has significantly outpaced the growth of in state player quality. In other states, some kids have options for off season coaching, 7 on 7 tournaments, and camps put on by multiple different sources. Other states are bringing in, and paying for, former NFL players to come coach teams. In Montana, at the single A level, it is most often a teacher that used to play high school football or a little NAIA ball.
With that, I think the staff has acknowledged it and is more than willing to bring in out of state kids. I have said this elsewhere on here, but the team is seeking the bests players, not the most Montana players. After having him for 3 years, I am glad we got Eli instead of the best Montana running back that year. Same with Ah Yat. Same with bringing in transfers like Wortham. Has there even been a player from Montana in the last four years that could successfully play NT in the 3 man front? I believe that Bobby's strategy has evolved a bit, though not as much as people think.
The staff wants to win as much as possible, and having a core of Montana kids is important to that.