It still has to be a consideration, though. Obviously you need to have confidence to play at the D-I level. However, CFB is littered with the stories Ishaq Williams that could have gone to the local school and started early on, but languish away at the factory and never rise to more than a role player. A lot of these kids are consistently being told how great they are from a young age, especially in a small town or an area that does not produce a lot of talent. This clouds their understanding of reality if they don’t have a ton of discipline to check themselves.
the flipside of that argument is that when you practice with the best, you are forced to compete. When you walk into a situation with less depth, you can coast on your rating and natural talent. When you are put in an environment where there is talent ahead of and behind you, it forces you to maximize your talent.
It is salesmanship. There's a pitch for seeing it either way, and there is merit in both ways. The trick is figuring out what appeals to what kid.