It's a curious phenomenon that people always bring this up as exclusively detrimental. In reality, it has its positive side as well. There always has been, and always will be, a certain subset of Division I-level players who take their academics very seriously. There are three top-15 academic schools* (Stanford #5, Duke #9, and Northwestern #12) who play Division I-A. In a hypothetical situation where a recruit has those as his three finalists, it's a no-brainer. Typically, those were the types of recruits Stanford signed, and why they were almost always a middling-to-poor team in the Pac 10 over the last few years. Now, they have a legitimate top-10 coach to sell to recruits, are beating out the other prestigious "combo" athletic-academic schools (USC, Michigan, Notre Dame, Cal, UCLA, etc.) and are building phenomenal recruiting classes.
Take a look at Harbaugh's 2011 commits. It's really fascinating - eight 4-stars from 7 different states (only two from CA!) and recruits from 13 different states/territories (DC) among 21 commits. It's obvious they're coming from far and wide for the Harbaugh/academics combo platter. He wouldn't have the restrictive academic standards at other schools, but he also couldn't sell a top-5 academic experience at any other DI-A school in the country. Despite all the other problems (attendance, salary, competing against other CA schools, etc.), I could see that as a reason he might stay there longer than any of us (including himself) think. Or, he may shuffle off to the NFL very soon. Either way, the odds of him coming here are slim, and Slim just left town.
*US News & World Report