never really bought the location argument for one simple reason....
pay much attention to athletes on campus and you realize the vast majority of them are far removed from the normal student and town life. They are in class, at practice or with tutors most of the time (not to mention any PT). The same arguments were had 20 + years ago when the football program was mired in mediocrity and then C Brown helped to break that barrier down. The program has been given an increase in resources with facilities and must produce something with that if it expects its "investors" to give more capital. At some point, more resources is not the answer.
I find it interesting that an ability to recruit football players is used as a comparator for basketball when discussing the location argument. Last I checked, a football team has ~85 scholarships, but basketball only has ~13. That numbers advantage increases the odds that a kid will know guys on the football team and feel like he has a place to fit in on campus already upon arrival.
With the smaller numbers in mind, joining the basketball team might feel like more of a crapshoot. Thus, the lack of additional avenues for places to meet people similar to oneself is a bigger concern for basketball players than football players, despite both groups relative isolation from the general student population.