It absolutely matters. I agree that the likes of UConn, Kansas, Michigan State, and Syracuse overcome lousy weather by winning. We don't have that track record. A player that might be willing to let 10 degree highs in January and frequent 3 inch snow falls slide to attend those schools won’t give the U of M the same slack. Let's face it, getting a top notch player from Southern California, Texas or Georgia can be very tough because many non Minnesotans perceive this place as being like Antarctica. More than a few Northern players prefer warm weather states or mild winter states to staying in their home state or region as well. We also must recruit nationally to maximize the quality of incoming players.
You overcome something beyond your control, like the weather, by maximizing the elements within your control to balance things out. That means getting a practice facility, renovating or replacing Williams Arena to ensure modern game day facilities, providing top class dorm accommodations, giving players access to an NBA level weight and training room, offering a fulfilling off the floor life, and offering excellent academic resources that don't go to Gangelhoff levels. Add those things together to create wins, then build on that combination to recruit better talent and keep things rolling forward. Weather and climate will matter less and less from there.