So how do you reconcile that you have all this talent, yet Jimmy can’t even get a sniff of the B1G CG
That's the million dollar question. Why can other less talented teams win their conferences and/or beat their rivals or OSU, but UM hasn't been able to under JH? I can't give a definitive answer. People are getting paid millions to figure it out. I could throw some shit on the wall and see what sticks, but who knows.
My guess is it's more complex than one thing. Meyer was fanatical about beating UM. Right or wrong JH values winning the entire schedule more than one game. He's really good at beating inferior opponents, but not so much at upsetting higher ranked foes. He doesn't want to lose games earlier in the year because he's preparing for OSU. That's a guess. Also, UM can't sneak up on OSU the way Iowa or Purdue can. It's the last game of the year every year and Meyer prepared all year for it making upsets less likely to happen. Depth has been a problem due to recruiting in Hoke's last 2 years. That's been slowly going away, but retention has also cropped up slowing the progress. Up until last year the QB and o-line was a problem in a pro style offense that has to run first and protect the QB for longer developing plays. The offensive play calling didn't do anything to mitigate it's weakness. It worked against lesser defenses, but not good ones. There was some luck involved in 2016. And, Haskins was was a matchup nightmare for Brown's style of defense. I think all these play a small role. But, I don't think that recruiting, at least under JH's tenure, has been the problem.
How much better talent do you need to overcome the limitations of your program
Again, I don't think it's a talent issue. The talent is good enough to win, at least once in a while. OSU always recruits well and always will. It's unlikely UM is going to recruit so significantly better than OSU that it could overcome all those things. But, a lot of the issues have gradually gone away. My hunch is as long as they get out of the dark ages with a more modern offense things will even out. It won't be the 90's again, but UM will win a few games at least to the level you'd expect based on talent they have.